For a long time, Apple considered Apple TV to be a hobby, not a real product worth focusing on, because it did not generate a billion in revenue. However, for a start-up, getting to $50 million in revenue can be the start of a wildly successful business. But being a start-up affords many advantages most giants would salivate over. As a nimble start-up you can leverage those to succeed. It is hard to build a $10 billion revenue business doing just one thing, and most giants have a broad portfolio of businesses, numerous products for each, and targeting a variety of customer segments in multiple markets. There are a host of things you can do specifically because you do not have the same scale as the giants. The giants certainly could not.
You can read more here: https://www.backblaze.com/blog/how-to-compete-with-giants/
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