Understanding the differences between aggregators and platforms matters for companies interacting with them and also regulators considering antitrust.
More on The Moat Map, and how it applies to Uber, YouTube, Spotify and the public cloud.
The Moat Map describes the correlation between the degree of supplier differentiation and the externalization (or internalization) of a company’s network effect.
Google and Facebook represent one philosophy, and Microsoft and Apple represent another; tech needs both, but ultimately platforms are more important than aggregators.
Netflix’s earnings are a reminder of the power that comes from not just aggregation but also integration. It also reveals that Aggregators are more likely to gain economic power when suppliers are already modularized. Plus, Netflix and Comcast start to build the new bundle.
Zillow fits the description of an aggregator, but it hasn’t transformed its industry due to a lack of integration. Now it is trying to do exactly that.
More on the fallout from Facebook and Cambridge Analytica: why Google and Facebook are different, why that explains how they treat data, and why Facebook seems so oblivious.
A review of why Google bought Zagat, what The Infatuation might do with the review site, and the parallels with the AMP project.
Spotify is in a much weaker position that Netflix was, because it could not build up a user base before negotiating with its suppliers. However, the company does seem to be acquiring customers efficiently.
Google is winning with AMP and blocking ads in Chrome: both seem bad, but aren’t they actually good for consumers? That is the paradox of aggregation.