Yea but it's not a zero-sum game. If I like a certain music genre I will listen to lots of bands in that genre, not just the best one (however you would define that) The way I find new bands is to listen to bands that are similar to the ones I already like and listen to. So its not necessarily all competition, it can be a way to be discovered. It also pushes bands to be more creative and stand out within their genre.
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