In today's hyper-competitive business landscape, it’s easy for Executives to fall into the trap of mimicking the success of competitors, especially in the tech and streaming industries. But there’s a dangerous downside to this approach—blindly copying competitors leads to a shallow imitation rather than true innovation. This is particularly visible in the streaming sector, where companies repeatedly replicate features pioneered by Netflix. However, the question remains: Are these features what customers truly want, or are they simply added noise?

In this post, I’ll explore why CEOs should stop focusing on their competitors’ shiny features and start obsessing over what their customers are really asking for.

The Netflix Effect: A Double-Edged Sword

Netflix has been a trailblazer in the streaming industry, setting the standard for what users expect in a platform. But that success has also created a ripple effect, where other streaming services feel compelled to copy Netflix’s every move—whether that’s rolling out recommendation algorithms, autoplay features, or binge-watching modes.

Take Disney+, Amazon Prime, and HBO Max as examples. Many of their features are eerily similar to Netflix’s. The interface might be slightly different, but the core functionalities often mirror Netflix’s platform. While there’s some merit in adopting proven techniques, blindly copying features doesn’t inherently create a better product. In fact, it may lead to missed opportunities to address what makes their own user base unique. Ive also had to laugh over the last 8 years as features that customer asked for in the research phase were blocked from being built because Netflix did not have that feature.5 Years later they did and an exec stands there in a meeting and asked why we didn't have it. Facepalm

The Copycat Problem: Chasing Features, Not Value

The biggest issue with copying competitors is that it distracts from your own company’s unique strengths. Instead of focusing on how to truly serve your customers, the company becomes consumed with ‘keeping up’—building features just because someone else did. This is a reactive approach, and it often misses the mark entirely.

For example, many streaming services implemented Netflix-style recommendation engines without asking whether their customers needed or even liked it. Was this algorithmic approach suitable for a sports streaming service where users may prefer a more curated, human approach? Probably not. But once Netflix led the way, other CEOs felt compelled to follow, even if it wasn’t the right fit for their customer base.

This competitive mimicry not only wastes resources but can also alienate customers who are seeking something different. In a crowded market, customers choose platforms that offer value specific to their needs—not just a clone of what’s already out there.

Customers Don’t Care About Your Competitors

A common misconception is that customers are watching the competition as closely as Executives are. In reality, customers are focused on how your product solves their problems, fulfils their desires, or improves their lives. They don’t care about your competitors unless those competitors are delivering something you’re not.

Consider the rise of niche streaming services. Platforms like Crunchyroll, which specialises in anime, or Shudder, focused on horror films, don’t aim to be the next Netflix. Instead, they’ve carved out loyal audiences by delivering on what their specific customer segments truly want, rather than copying Netflix’s broad-market approach. These platforms have achieved growth by honing in on their customers’ preferences and building features that are unique to those desires.

Real Innovation Comes From Listening to Your Customers

So, what should CEOs do instead? The key lies in a deep understanding of your customers’ needs and behaviours. Too often, companies build feature roadmaps based on what their competitors are doing, rather than what their own customers are asking for.

If you’re in digital services business, ask yourself:

• What do my users complain about the most?
• What features are they constantly requesting?
• How can I differentiate my product based on the unique ways my customers engage with content?

For example, Hulu might focus on its live TV integration as a key differentiator, while others could explore innovative social viewing experiences or more granular parental controls. These features may not exist on Netflix, but if they satisfy an unmet customer need, they’ll drive value and loyalty far more effectively than a recommendation algorithm or autoplay feature ever could.

The Danger of Ignoring Your Customers

Ignoring your customers to chase competitor features can lead to failure. One of the most infamous examples in the tech industry is Quibi. Quibi attempted to revolutionise the streaming world with short-form, mobile-first content. They spent a fortune on features that no one asked for—turnstyle viewing that let users switch between portrait and landscape modes in real-time. What they didn’t do was listen to potential customers who were confused about the platform’s purpose, unclear on its content strategy, and unwilling to pay for the service.

Quibi focused on the flashy ‘next big thing,’ instead of building something their audience wanted. Within months, the platform collapsed.

How to Break the Copycat Cycle

1. Engage With Your Audience: Have the product team conduct user research & surveys. Have direct conversations with your customers to understand their pain points and desires.
2. Develop a Unique Value Proposition: Your value should not be in features that exist elsewhere but in how your product serves your specific audience.
3. Test and Iterate: Build and release features in small batches. Gather feedback from your users before committing significant resources to full-scale feature launches.
4. Ignore the Noise: Focus less on what your competitors are doing and more on how you can innovate for your customers. Your goal isn’t to be the next Netflix or Amazon Prime—it’s to be the best version of your own company.

Conclusion: The Future Belongs to Customer-First Companies

Executives who focus on copying competitors are missing the mark. Success doesn’t come from building the same features as your rivals; it comes from building a product your customers can’t live without. And to do that, you need to listen. Instead of obsessing over the competition’s every move, start asking your customers what they want. That’s where real innovation happens.

Stop copying. Start listening. And you’ll build something worth talking about.