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Content products talk to humans, while software products talk to computers. That’s why the value of content decays faster than the value of software. And it’s also why software is the better business.

You use the same search engine, but you don’t ask the same questions. You use the same CRM, but you don’t pitch the same customers. You use the same streaming service, but you don’t watch the same movies.

It certainly feels like content and software are very similar. However, there’s one thing that isn’t very similar: software companies typically have higher margins and lower customer churn. Why is this the case?

Instead, I frame the difference like this: content products decay while software products don’t: