Owning Customer Relationship
Companies that win in the Internet era do so by owning the customer relationship, which gives them power over suppliers.
-
Amazon Health doesn’t seem like much now, but there are hints it could be the ultimate application of Aggregation Theory.
-
Disney’s rumored acquisition of 21st Century Fox is all about competing with Netflix; whether or not that is a good thing depends on your frame of reference.
-
The Internet has removed scarcity, meaning business models based on controlling distribution are no longer viable. Instead, the key to success is controlling access to the best customers — and that means being the best.
-
Sports Gambling Defederalized, Amazon Channels
Sports gambling is defederalized, and the opportunity is likely larger than people think: then, Amazon Channels is another manifestation of the company’s “first customer” strategy.
-
Tech’s Two Philosophies
Google and Facebook represent one philosophy, and Microsoft and Apple represent another; tech needs both, but ultimately platforms are more important than aggregators.
-
Netflix Earnings and the Video Value Chain, The Conditions of Aggregation, Comcast and Netflix and the New Bundle
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, Aggregation, and Integration
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.
-
Spotify Debuts; Trump, Amazon, and the USPS; The Politics of Amazon
Spotify debuts, and I really want to be bullish, but it’s hard. Then, Trump might have a point about Amazon, but it’s moot: the company should be defended.
-
More Spotify; Spotify, Uber, and Airbnb; Uber, Waymo, and SoftBank
A bit more on Spotify, and then the lessons to be learned by Uber and Spotify. Plus, a potential Uber-Waymo partnership, and why they company will likely sell-out in Southeast Asia.
-
Could Spotify Be Netflix?, Calculating Spotify’s LTV and CAC
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.
-
Lessons From Spotify
Spotify has a marginal cost problem, but while the cause is unique to Spotify, the challenges are more applicable than it seems.