The degree to which a company depends on a platform or ecosystem.
- Zynga depends on Facebook
- Logan Paul depends on YouTube
- Firefly depends on Uber
- Pigeon depends on Gmail
- TikTok depends on Apple
- Drake depends on Spotify
- Netflix depends on AWS
- Smile depends on Shopify
What’s the problem?
- Platforms may enter your territory
- Platforms may change rates
- Platforms may shut you down
- Platforms may change visibility
What’s the upside?
- You’re in a smaller pond (compared to the internet)
- You can focus on what you do best
What’s the caveat?
- Remember that you’re on a platform
- Build a moat if play on platforms
- Build a direct relationship with your audience
- Build a platform. If you can’t beat them, join them.
What else? Let me know on Twitter. — The irony is not lost on me.