Can DraftKings Be the Netflix of Online Betting?

When Netflix (NASDAQ: NFLX) first pivoted to streaming content from mailed DVDs, it was a relatively small company. It faced potential competition from major players like Disney (NYSE: DIS), Comcast, HBO (which was then owned by Time Warner, but is now owned by AT&T (NYSE: T)), and even Blockbuster.

All of those companies could have squashed Netflix by competing with the current streaming leader's moves in 2007. None did quickly. By the time the first rival, Blockbuster, tried to, it was too late.

Netflix had the first-movers advantage, which more than compensated for the fact that it was a relatively unknown company offering a streaming library of reruns and movies people had already seen. The company owned nothing, but by being first, it was able to gain customers and make favorable deals with content owners who thought they were getting free money for content that had already been sold to DVD, TV, and syndication formats.

Continue reading

Source Fool.com