A note from Maggie

Then the relationship sours. As the network moves up the S-curve, the platform begins to wield more power over users and third parties. Network effects strengthen, but growth slows. The relationship between the platform and its complements turns hostile. Positive sum becomes zero-sum. To keep profits coming, platforms start capturing more of the money that flows through the network. This is what happened when Facebook strangled Vine and other apps, and when Twitter swallowed its third party offspring whole. Platforms eventually cannibalize their complements.

Maggie Read Write Own, page 40 · February 29, 2024 Save to shelf
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