2018/11/29: An Amazon revolt could be brewing as the tech giant exerts more control over brands. In the last few months, Amazon has applied intense pressure to consumer brands across different product categories — seizing more control over what, where and how they can sell their goods. Amazon is telling brands — like PopSockets — that neither they nor their distributors can sell directly to customers as an independent seller on the platform for third-party merchants known as the Amazon Marketplace. The power move is believed to be a prelude to a new internal system that Amazon has yet to launch called One Vendor. ”I don’t think Amazon understands how close they are to blowing themselves up,” one analyst warned.
2018/10/09: In a world where so much is now controlled by so few — there are five big book publishers left, five Hollywood studios, five large health insurers, four phone providers and four cable companies — and this summer AT&T bought Time Warner — Amazon’s reach is terrifying.
Its ostensible search for the next city to house its second headquarters has become “the Olympics on steroids,” Galloway says, with state and local governments promising tax breaks that would starve funding for schools, police and fire departments. We have a new national holiday, Amazon Prime Day. Alexa and Echo, Amazon’s cloud-based voice-operated systems, sit in an estimated 40 million homes and spy on us, reporting our moods, tastes, wants, needs and fears back to HQ.
Yet we don’t fear Alexa.
Bezos has even greater ambitions.
2018-09-24: Google parent Alphabet and the other four dominant U.S. technology companies -- Apple, Amazon, Microsoft, and Facebook -- are fast becoming industrial giants. They spent a combined $80 billion in the last year on big-ticket physical assets, including manufacturing equipment and specialized tools for assembling iPhones and the powerful computers and undersea internet cables Facebook needs to fire up Instagram videos in a flash.
Thanks to this surge in spending -- up from $40 billion in 2015 -- they've joined the ranks of automakers, telephone companies, and oil drillers as the country's biggest spenders on capital goods, items including factories, heavy equipment, and real estate that are considered long-term investments.
Their combined outlay is about 10 times what GM spends annually on its plants, vehicle-assembly robots, and other materials. The splurge by tech companies is behind an upswing in capital-goods spending among big U.S. companies, which is seeing its fastest growth in years, according to a Credit Suisse analysis. The $80 billion tab also is a snapshot of why it's tough to unseat the tech giants.
How can a company hope to compete with Google's driverless cars when it spends $20 billion a year to ensure it has the best laser-guided sensors and computer chips? There are a lot of physical assets behind all those internet clouds.
2008/06/30: My point is not to suggest that Elberse is wrong and that I’m right, it’s only to point out that different definitions of what the Long Tail is, from “head” to “tail”, will generate wildly different results.
Anyway, it’s getting late and I just wanted to highlight a few other interesting data points and conclusions from her article:
Much of the paper is about consumer satisfaction in the head vs tail. In the Quickflix data, she says, “customers give lower ratings to obscure titles…it is a myth that obscure books, films and songs are treasured. What consumers buy in Internet channels is much the same as what they have always bought.”
That may be true for the specific example of the Australian DVD data, but it is not clear from the paper why she feels able to extrapolate that to all Internet commerce.
The heaviest DVD renters were the most likely to venture into the tail; light consumers largely concentrated on the hits.
In music, of the 2.4 million digital tracks sold in 2007 in the US (most of them through iTunes) 24% sold only one copy and 91% sold fewer than 100 copies.
2008/07/01: Chris Anderson has been proved wrong. The Internet doesn’t increase sales of the long tail, it concentrates sales of blockbusters. Similarly, the Internet doesn't eliminate middlemen, it reduces their number and makes them more powerful; we’ve known this for ten years.
2018/06/27: The social giant is retreating from the news business. It’s been a painful transition for publications that had come to depend on it—including Slate.
La rivoluzione di internet ha messo in crisi il modello capitalista e creato un nuovo ceto di oligarchi dell'informazione. Manifesto per una difesa di cla...
Understanding the differences between aggregators and platforms matters for companies interacting with them and also regulators considering antitrust.