Tile: the company that should have learned from Netflix
Until one year ago, Tile was the undisputed market leader for general-purpose tracking devices. Although they have not been the only ones in this sector, they have always been considered the undisputed leaders, until April 21, 2021...
Have you ever forgotten your keys somewhere? But Don't worry, it has happened to all of us. The stress level and the number of distractions that we carrying those days lead us in one way or another to forget some important things.
Tile started his business model based on this paradox: don't let the routine forget your valuables. The company's name corresponds to its product, Tile, a low-profile device that you can place in those valuables that you do not want to forget.
Using the keychains example, Tile reinvented itself by creating other "Tiles" of various sizes and shapes; to facilitate its use in some types of objects, such as suitcases, wallets, cell phones, and wherever your imagination would take you using them.
And it is that Tile could not be born at a better time. At the time of its birth, companies such as Facebook and social networks began to gain strength, which, in my way of thinking, are the reason behind people began to actively lose their attention.
But the question is, why did I mention that Tile should have learned from Netflix? And we need to explain what is happening today in this sector. Until one year ago, Tile was the undisputed market leader for general-purpose tracking devices. Although they have not been the only ones in this sector, they have always been considered the undisputed leaders, until April 21, 2021 ...
What happened?
Apple. As simple as writing that name at the beginning of this sentence. And it is that when the master of the ecosystem that you use to build your business sees that you are doing well, one day they will want a piece of that cake.
For some years now, the technology community has rumored about a possible Apple device with certain similarities to Tile devices. And it is precise, is what, in my opinion, has been the opportunity that Tile did not know how to take advantage of this information.
Now, why compare Tile to Netflix? Very simple, Netflix, like Tile, fought against his Goliath. Although let's say not just once, but several times and he knew how to survive.
These are where my admiration for the Founder of Netflix, Reed Hastings, is born, but I confess that I no longer have the same appreciation for the company. That's a topic for another day.
Since its creation in 1997 (YES, Netflix is 24 years old), it has overcome many obstacles. That's consolidated it as one of the great examples of strategy and business vision in the world.
From the distribution of audiovisual content through its subscriptions for DVD rental through postal mail to its digital transformation to distribute these contents in a 100% digital way through the internet, Netflix has found many ways to transform itself and lead its industry.
However, overcoming these obstacles has not been an easy task. In one of its last battles, Netflix found itself embroiled in one of its most difficult problems, its raw material: The Content Catalog.
As was rumored for Apple and its departure to compete against Tile, Netflix had a similar situation when rumors spread that HBO had intentions to go on the market with its content platform. Netflix understood its reliance on third-party catalogs to hold its users captive. It is there where the resilience of this company must be copied to overcome obstacles. Faced with this situation, Netflix began a stealth strategy that few understood until the time of the departure of its opponent.
And it is that behind the scenes Netflix was building its proprietary catalog of original Titles and Series through the massive purchase of rights and the sponsorship of original productions that needed capital to come to light. Netflix was not only a streaming platform, but now it is also one of the most important film production companies in the world.
This was not an easy task, I have made the company register negative figures for a long time with the conviction that this strategy would pay off. They were not wrong.
Although their markets are essentially different, the obstacles were similar, and only those capable of a broader vision have been the survivors.
Today Apple has the hammer, and it is hitting hard on Tile's business model. Although it the difficult to get into a proprietary Operating System, with a strategy, Tile could found a solution in time to the problem that was already coming.
Yes, it is easy to say, but difficult to do.
It is true, I do not know the culture and vision of Tile, but what I do know are the technological trends that accompany us. How about looking for a solution that would work with the telephone companies directly and looking to skip the Operating System? Or maybe invest in new technologies that open the doors to new solutions. These are also examples purchased from Netflix. Business concepts such as SaaS, streaming, and Microservices have reinvented concepts thanks to the contributions of this company.
The reality is that Tile comes face to face with his Goliath, and only time will tell us if the right steps were taken to mitigate their enemy. Meanwhile, Apple has arrived strong, well-received by its users, and with a thirst to win at all costs. Unfortunately for Tile, Apple has the resources. Hopefully, the story ends in such a way that Tile will be the example to follow for the companies of the future.