Distribution and Transaction Costs
The key economic change introduced by the Internet is the effective elimination of marginal distribution and transaction costs.
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The history of technology is of two distinct eras: information technology enhanced existing business. The Internet revolution is destroying them.
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Clayton Christensen claims that Uber is not disruptive, and he’s exactly right. In fact, disruption theory often doesn’t make sense when it comes to understanding how companies succeed in the age of the Internet.
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Daily Update: Facebook to Host Media Content, Vox’s Facebook Strategy and Keywee, Bill Simmons’s Next Move
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Daily Update: The Content Creator Opportunity, Firefox’s “Strategic Choice”, Qualcomm to Build ARM Server Chips
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Differentiation and Value Capture in the Internet Age
The implication of the Smiling Curve is not only that aggregators have increased economic power, but that differentiated suppliers do as well; Omni Software is an example.
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Publishers’ Deal with the Devil
Ay, we must die an everlasting death. What doctrine call you this, Che sera, sera, What will be, shall be? Divinity, adieu! – The Tragical History of Doctor Faustus, Christopher Marlowe To evoke Faust as allegory for the ongoing dispute between Amazon and book publishers is appropriate on two levels, the first being the nature […]
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Newspapers Are Dead; Long Live Journalism
The fundamental economic model of newspapers is broken; for journalism to survive, new business models must be found.