5 Ways ChatGPT Fell Short in Helping Me Create Netflix Rival

BY PETER COHAN, FOUNDER, PETER S. COHAN & ASSOCIATES@PETERCOHAN

Last week I wrote about StreamSphere -- the online streaming service created from my interaction with ChatGPT to help me envision a rival to Netflix that would dominate the online streaming industry by 2024. 

While I enjoyed my back and forth with the chatbot, it failed at the task I gave it. The chatbot forecast StreamSphere's 2034 revenue would reach $25 million. With Netflix forecast to generate about $71 billion in revenue in a decade -- assuming it grows at 8 percent a year from $32.7 billion in 2023 revenue -- StreamSphere has no chance of becoming the industry leader in a decade.

To be fair, in my recent article, I did not include the caveats ChatGPT provided in its responses. For example, with its revenue forecast, ChatGPT wrote, "Remember, these estimates are based on assumptions, and the actual performance of StreamSphere will depend on numerous factors. It's essential to monitor user adoption, adjust strategies accordingly, and regularly update forecasts based on real-world data and feedback."

If you are thinking about using ChatGPT to come up with new business ideas, set your expectations appropriately. This means do not expect ChatGPT to provide all the thinking and action required to build a successful business. 

Here are five topics I found vital to getting StreamSphere to my goal of industry dominance in a decade. how ChatGPT helped and what the company's CEO would need to do to achieve that goal.

1. Deliver an irresistible product.

People are not likely to switch to a new service unless it offers irresistible content.

Here is how ChatGPT responded to my prompt about how to do that for StreamSphere: "The series should not only be compelling and high-quality but also align with StreamSphere's unique features and value proposition." To do that, ChatGPT suggested producing storylines that subscribers could shape and collaborate with outstanding producers, directors, actors, and writers.

This advice leaves StreamSphere's CEO with a significant to-do list: 

• Invent a compelling, original story idea
• Identify specific producers, directors, and other talent with whom to collaborate
• Compel them to join the project
• Agree on the contract terms 
• Produce and market the content

2. Win the first customers.

To win StreamSphere's first customers, I prompted ChatGPT for advice on how to conduct market research to test out potential customers' willingness to subscribe and asked for suggestions on how to market the service.

ChatGPT gave me solid general advice. For example, the chatbot provided a good customer interview guide, gave me an educated guess on how potential customers might respond to the questions, and offered general advice on a multipronged media campaign -- including print, video, social, and other media.

This left an extensive list of tasks for StreamSphere to complete, including:

• Develop a list of say, 100, potential customers to survey
• Conduct the surveys and analyze the results
• Modify StreamSphere's content and strategy based on the results
• Produce the marketing content
• Execute the multi-media marketing campaign

3. Build a great leadership team.

I asked ChatGPT to help me build a leadership team for StreamSphere. Its response was to hire the traditional C-suite including a CEO to provide vision and leadership, as well as chief product, content, marketing, technology, and financial officers.

To execute this textbook advice, a founder would have much work to do:

• Articulate a vision that will attract talent
• Identify the best candidates for each role
• Interview the candidates and sell them on the StreamSphere vision
• Make offers to the best candidates and agree on contract terms
• Lead the team to formulate and execute the business strategy

4. Raise sufficient capital to scale.

StreamSphere would need capital to grow. ChatGPT listed potential types of investors, such as venture capital and private equity firms, angel investors, strategic investors and crowdfunding platforms. This laundry list of investors left the founder with a list of to-dos much like the ones for building the management team.

5. Estimate your return on investment.

To raise capital leaders must show potential investors what kind of return they should expect. ChatGPT did a fine job of listing the key variables required to build a cash flow model.

ChatGPT left the specific assumptions in the hands of StreamSphere's CEO. Quantifying these assumptions would require the leader's detailed knowledge of the specific amounts needed to build and operate the business.

The takeaway? ChatGPT can make textbook lists of things an entrepreneur must do to build a new business. That still leaves the entrepreneur to deliver the inspiration and perspiration required to build a successful company.

Photo Credit: Getty Images.