The commoditization of the actual hotel did not eliminate all profits in the industry, they just shifted these profits to other activities. Hence, "The Law of Conservation of Attractive Profits." When some parts of the value chain become commoditized, other parts necessarily become more valuable.
Netflix makes money by selling subscriptions to its bundle. Of course the execution of this strategy is considerably more complex. For example, Netflix focuses on evergreen content because that means that ever more content increases the attractiveness of Netflix to new subscribers, reducing customer acquisition costs. Netflix is also focused on qua... See more