Rory Sutherland [0] has a great quote:

"If you really want to great phenomenal items here is the plan:

- enter a market

- become a monopoly

- use those monopoly profits to fund R&D/building items of incredible quality"

A recent example of that is Apple TV. Apple makes so much money that they can fund the creation of incredibly high quality shows with basically minimal advertising.

0 - https://www.tiktok.com/@rorysutherlandclips/video/7314765561...

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matheusmoreira 4 hours ago | parent [-]

> use those monopoly profits to fund R&D/building items of incredible quality

But why would a corporation do that when it could simply distribute those profits to shareholders?

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randallsquared 3 hours ago | parent [-]

Unless mandated, why would the people controlling a corporation (and its budget) do that? While the corp has money in the bank, it's kinda their money, in the sense that they decide what to spend it on. If distributed back to the shareholders, the money evaporates from their perspective, so there's not much incentive to do it unless it's required, or unless they will benefit by it (e.g., they have a lot of stock themselves and would like the dividend).

	▲	matheusmoreira 3 hours ago \| parent [-]
		Corporations that have gone public are essentially lost causes. CEOs are incentivized to maximize shareholder profits at all costs, and it's much easier and cheaper to enshittify than to research and develop. I suppose it's possible for privately owned corporations to be awesome. If the guy in charge cares, awesome things will happen. Valve is the only concrete example that comes to mind.