What the shenanigans?

http://en.wikipedia.org/wiki/Competition_(economics)

I'm aware of the practice. I live near it. I can walk from my house to a wendy's, which is across the street from a mcdonalds, and in the past, there was also a burger king across the highway from those two, and a KFC that was recently closed down in the same block as the burger king. There's an Arby's down the road from the mcdonalds, which is across from an Acme, which itself is further down the highway from a Shop-Rite that used to have a taco-bell in front of it, and a Friendly's across the road from those two (the friendly's is still there), where now there's a dunkin donuts across from friendly's. Inbetween there's various other stores, at least three temp agencies, a new L.A. Fitness which is up the road from a gym where I've a membership at. Then there's a Super Wawa that's got the normal Wawa goodness to it, but there's also a gas station there too. Which is across from a shopping complex with a place called Aldi in it (some supermarket where you use a quarter to get a shopping cart), a strip mall with several closed down stores (just in a bad area), and a Bank of America; there's a new bank that was built called National bank across from that entire complex and before the wawa / gym, and those are down the road from a TD Bank, formerly Commerce Bank (Regis and Kelly do adverts for them).
Of course I'm leaving out the dollar store, the Subway, the K-Mart that's further down in the direction towards the TD Bank and the taco-bell/long john silver's (twofer building) across from the K-mart.


....I probably just gave anyone in NJ enough landmarks to find out where I live, whereabouts anyways..


I digress.
The main thing I don't get is, why even enter the competition anyways? If not those two, Netflix has a huge, or better yet, immense lead on them in this front. They've an established customer base for movies and TV shows. Utube? They've got cal like Fred, adorable kittens that get tickled, and other up-and-coming directors that use it as an outlet for their works. My qualm's their attempt to spread out their content to compete against those other companies. I don't see it being a cost-effective move at all. Sure it sounded good on paper and in the board meeting where it was presented, i'm sure, I just think too rationally for that sh'it. If I already go to A for my X, and B for Y, why would I, an established consumer of X and Y, want to go to B for X and Y, when A's been there for long enough that I've grown fond of their services?
On that note no I do not use netflix. I am not however pleased with this BS that Utube's gone and done, forcing people to have a google account just to use the site when before then they simply threw the notion into my face whenever I logged in. I've already made a rant on this elsewhere so let's leave that dog lying where it is.

tl;dr: Utube is stupid.