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Re-investing

Netflix has a much higher number of paying subscribers than any of it's competitors. This means that it brings in more revenue for it's service than what it's competitors can do. 

As a result, Netflix is investing nearly four times as much as it's nearest competitors in creating original content. 

If all companies have the same probability of creating original content that resonates with the users and hence becomes popular, Netflix will end up creating four times as many hit shows as its competitors. 

And this is an advantage that compounds over time.

Of course, the success of Netflix is not a foregone conclusion because the probability of coming up with hit shows is not the same for everyone. 

Nonetheless, Netflix has a decided advantage due to it's scale. 

This advantage is the ability to re-invest gains for growth.

As individuals, we can create our own advantages in this way by re-investing the gains we incur in our own growth. 

What percentage of your income do you invest in your own growth?

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