It strikes me as odd that so many people think a business has to be unique to succeed. 99% of businesses do something that another business already does. For that matter, almost by definition, most businesses are not the leader in their niche. That doesn't make them unprofitable.

But what about moats??? My business guru told me I need an ironclad irreproducible moat! /s

I understand you're joking, but I guess that depends if you are trying to monopolize a market, retain first-mover advantage, etc. I guess ability to execute is itself a type of moat, perhaps especially so when the potential competition would be other startups that are statistically highly likely to fail.

Still, I wonder how many head-on competing businesses of a particular category the market can bear before they start feeling it via competitive pricing pressure, lower sales and/or slower growth, etc. What if there were 2 more video-flipbook companies, or 10 more ?