BACK
Posted: 2020-11-03 8:57:09

Is the Internet Different?

From Ben Thompson at Stratechery by Ben Thompson
Originally published 2020 11 03
Because Aggregators deal with digital goods, there is an abundance of supply; that means users reap value through discovery and curation, and most aggregators get started by delivering superior discovery. Then, once an Aggregator has gained some number of end users, suppliers will come onto the Aggregator’s platform on the Aggregator’s terms, effectively commoditizing and modularizing themselves. Those additional suppliers then make the Aggregator more attractive to more users, which in turn draws more suppliers, in a virtuous cycle.
The very premise of this site is that the Internet takes preference differentiation to the extreme, resulting in never-ending niches that can be profitably filled. Moreover, this isn’t simply about small websites: just last month I wrote about how Disney is pursuing an integration strategy that is an antidote to Aggregators like Google and Facebook, and how that can be model for other media companies. The Article included this distinction: Aggregators are content agnostic. Integrators are predicated on differentiation.
Read the original post >

Tags:Articles