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Own the Demand
Supply and demand are the push and pull determining availability and price. Their dance is never-ending. A sudden shortage can send prices soaring; a discovery can send them crashing.
But supply and demand aren’t just about price; they’re also about allocation. They determine who gets what and how much of it.
Markets react to supply and demand. When
This means that for aggregators, customer acquisition costs decrease over time; marginal customers are attracted to the platform by virtue of the increasing number of suppliers. This further means that aggregators enjoy winner-take-all effects: since the value of an aggregator to end users is continually increasing it is exceedingly difficult for c... See more
stratechery.com • Defining Aggregators – Stratechery by Ben Thompson
With the rise of these services, it’s becoming increasingly more important to own the default channel that the users go to for leisure, for distraction, for whatever it is, because in the, you know, near-infinite nature of the internet, you can push whatever you want through that channel to reach that audience.
David Rosenthal • Instagram | Acquired Podcast
Ben Thompson described this phenomenon in his signature aggregation theory. Pre-internet, you captured profits by controlling supply. Now, post-internet, you capture profits by aggregating demand.