How can platforms claim to open up the world while their revenue comes from personalisation?
Opening up the world to filter on a personal level
Google and Facebook's mission statements both resonate they want to give equal and worldwide access to all information available. Ironically, both organisations make money out of tailoring content, matching the user's existing worldview and interests. How open is the worldwide web, and how much change could blockchain trigger for people to connect beyond their communities of like-minded people, after being pampered to only see what they know?
One of the most basic rules of economics and business is the equation of question and demand. It determines the optimal (most efficient) price for a product, by comparing the total costs (including a desired profit margin) to the willingness to pay; as well as it determines the related quantity a business could sell at this price without making a loss.
This simple rule forms the basis of the free-market philosophy and is believed to be the most efficient equation, as it would drive competition to produce more efficiently.
The economy has based upon this principle for ages. Businesses competed one another by finding ways to undercut costs, or by developing better products which would justify a higher price.
Platforms Connect
Facebook, Google, Uber, Airbnb, Spotify, Apple,… Big players who not necessarily have the best product, nor even the most innovative. Competition within their markets exists, yet costly to sustain to those who try. What’s their secret?
We are. The users, their big pool of users. And more importantly: our data. Fuelled by advertisers and all sorts of organisations interested in analysing data about our habits, platforms offer their services for free to users, to generate a critical mass.
‘Accept terms and agreements’ then gives them the freedom to monetize all the data and privacy you are willingly giving away.
Social networks don’t only sell your data, but analyse it to create an even bigger lock-in of users. Showing posts that correspond to your previous searches, likes, content.
It’s especially this feature of online platforms that saddens me.
‘Cause if you are only shown what you know and like already, then where is the value of having this extended network with the rest of the world online?
Connecting the world, only to keep individuals more cocooned is (in my humble opinion) what’s going on right now.
‘Making the world more open and connected’ is a nice ideal these platforms are often built upon.