When we talk of natural monopolies, the usual suspects tend to be utilities like power, gas, waterworks etc. Dominant firms in such industries can easily notch up huge market shares and thwart competition. No wonder then, these industries tend to be regulated around the world.
According to CNNMoney, US regulators are beginning to wonder if Google is a natural monopoly. That seems like a bit of a stretch. After all, isn't the internet a perfectly competitive market place? But 76% dominance of the search market does raise the question whether there's more than meets the eye. However, the company presents several points in its defense. First, 'competition is just one click away'. If internet users turn to Google, it is due to the power of habit and not because the company prevented them from turning to other search engines. Second, it doesn't lock anyone into its software like Google Docs. The software formats are open, so users can move content to rival products.
Because of these reasons, regulators have not been able to make a convincing case so far. Their best chance would have been if Google partnered with a rival like Yahoo. But that's not on the cards. For now, everyone simply has to acknowledge the fact that it is a great business - with a strong competitive advantage.
Learning from #FriendsReunion - Plan Your Bottle Episode While watching Friends: The Reunion a while back ( Yes, i am super late, been a very busy week) something struck with me which the show’s creators said about "budgeting" a term called Bottle Episode. On Friends - Its one of the most successful television sitcoms of all time. From 1994 to 2004, the show never left the list of top 10 most-watched television programs. It was also one of the most expensive television series of all time. By the last two seasons, each of the six main actors earned more than $1 million per episode. From the resources perspective, the show has more than justified that expense since then. As per some estimate Friends earns around $1 billion a year from syndication, merchandising, streaming, and other deals. During the reunion show, creator Marta Kaufman talked about how they planned “bottle episodes” each season to manage the show’s budget....
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