Paik: Poaching creators from rival platforms using minimum guarantees never works
Chris Paik · Chris Paik: How I Raised $400M; Substack's Broken Business Model; Music on TikTok vs IG | E1011 · 20VC with Harry Stebbings · May 9, 2023 · at 1:40:56
Chris Paik, General Partner at Pace Capital and former GP at Thrive Capital who sat on Twitch's board, discusses lessons learned from Twitch competing against platforms like Microsoft's Mixer.
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“On navigating competitive environments, I think seeing Twitch firsthand gave me one of my mental frameworks, which is, are like companies or platforms that start with the explicit strategy of poaching, like economically incentivizing supply from another platform. So, like, we see this, you see this in, like, companies starting, and they're offering kind of creators or the supply, like, minimum guarantees, economically incentivizing them. That strategy does not work. Because you are fighting an uphill battle and going against gravity.”
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