Friday, Feb 19th 2021

The distribution paradox

Commentary

In business and investing, "distribution" is often a misunderstood concept.

Sometimes, it's viewed as an advantage that can keep the good times rolling for incumbents for a while, but inevitably results in disruption as soon as a more customer-centric offering enters the picture.  

Other times, distribution is seen as the killer superpower for supercharging growth, with many prominent examples of large scale players leveraging their distribution advantages to beat nimble upstarts at their own game.

The truth is, a distribution advantage is not a silver bullet. It's actually a two-sided coin.

When it's used to entrench a dominant leader that has grown complacent and lost touch with their customers, distribution is more of a weakness than a strength to the extent it drives corporate complacency.  

Think: the cable & media business before Netflix stormed into the picture with its first streaming concept.

However, when distribution is used as a tool to create and add value for customers, it can be a killer source of underappreciated growth.

We've seen this many times across Titan portfolio companies, and actually saw rumblings of it this week, with Disney+ leveraging its distribution into nearly 100 million households to launch a new media brand called Star centered around non-children's content.

Will Star wind up becoming Disney's own HBO? Only time will tell.  

But to assess the potential value of any company's distribution advantage, you need to keep both sides of the coin in perspective and never divorce the concept of distribution from how it's actually being used.

Back to Research ↗

Learn with titan

Investment articles and resources

Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.

Understanding the Different Types of Cryptocurrency


What Is the Average Historical Stock Market Return?


7 Alternative Cryptocurrencies (Besides Bitcoin & Ethereum)


What Happens to Your 401(k) If You Get a Divorce?

Let's Get Started

Ready to become a client?

Create an account with us in two minutes.

Or scan to get the app

We're building the best investment platform, ever

Titan Global Capital Management USA, Inc ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept our Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance. Account holdings are for illustrative purposes only and are not investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. The introducing Broker Dealer is Titan Global Technologies LLC, a registered broker-dealer and member FINRA/SIPC. Brokerage services are provided to Titan Clients by Apex Clearing, an SEC registered broker-dealer and member FINRA/SIPC. For more information, see our disclosures. Contact: 508 LaGuardia Place NY, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

© Copyright 2022 Titan Global Capital Management, Inc. All Rights Reserved.