The digital platform model is rapidly taking over. This is something that the Web3 world needs to pay attention to.
Over the last few decades, we saw a division in where platforms focused their attention. This is no longer the case.
We covered a great deal about what Elon Musk is doing with X. He has grand plans for that network. However, it is not the only one massively transitioning.
This is part of the shifting trend towards social media, commerce, entertainment, and finance all merging. Anyone who operates under the paradigm of trying to replace a particular application is going to find themselves really suffering.
Image generated by Ideogram
Spotify: The Social Network
A social network has a build in advantage over other business models.
When we look at the numbers, they are huge. This is the main advantage. It is also something that Spotify is seeking to leverage.
Before getting into what that company is doing, let us look at some basic numbers.
The application has 239 million subscribers. There are over 6 million podcasts available. In total, their monthly active users tops 615 million. Source
Naturally, when compared to the likes of Meta and Google, this is rather small. That said, it was achieved using a targeted model. It is now opening itself up.
This is what is happening:
With Spotify’s recent launch of comments on podcasts, the streamer is taking yet another step toward building a social networking experience in an app primarily known for music. With comments, podcasters can now engage with their listeners directly within Spotify, as they can with other interactive features like Polls and Q&As. Combined with the app’s 2023 revamp, which added a TikTok-like discovery feed, artist profiles where creators can hawk merchandise and concert tickets, as well as the ability to post to stories, Spotify’s app is shaping up to be a social network centered around all things audio, not just a music-streaming app.
Notice what is being incorporated.
To start, comments allow for social engagement, with artists being able to interact with their fans. This is huge especially since the material is right there. That said, the big move is with commerce.
Artists are able to sell merchandise and concert tickets. While this is a focused approach it does set the stage for larger moves in the future. By developing the infrastructure, Spotify could start offering whatever products it desired.
Spotify is competing for the same thing as everyone else. The game is to garner the users time. By expanding what is offered on the platform, more attention can be given through the offering of more products and services. Naturally, this directly ties into advertising which is extremely important to digital platforms. Further monetization is crucial.
Can Spotify make the transition? This is going to be tough since it is in the mindset of people that it is a music platform. We know that once people have a brand view in their minds, it is tough to change.
Web 3: Building From The Start
Here is where Web3 has an advantage. It can start to build these platforms encompassing more than just a singular focus. The digital platform model is going to require the offering as much as possible to the user base.
The one advantage that Web3 has over these other companies is ownership. No matter what Spotify does, it is not offering this to the users.
Spotify owns all its infrastructure along with the data required. By opening up the site to comments and other social media type of activities, the data accumulation can skyrocket. We know how much value this has.
People are going to wake up one day and be amazing what is being offered by Big Tech. These are full blown technology companies run, in many instances, by people who do not look at things in a siloed manner. To someone like Elon Musk, there is no market unfit to penetrate. The same is true for Zuckerberg and Meta. Google is expanding its wings. Of course, Amazon is branching out into field not associated with an online retailer.
In other words, they get it.
The question is whether people in Web3 understand. A lot of what is taking place is focused upon infrastructure, something that is vital going forward. That said, we have seen a lot of segregation in the approach of entrepreneurs. The focus is narrow which means it is likely to fail.
Fortunately, this is not going to be everyone. There will be those who see the potential and set something like this up from the start. We will see multi-billion dollar platforms build that follow the model.
Here is the exact opposite of the thinking that is required:
In 2010, Steve Jobs introduced iTunes’ new social network Ping as “Facebook and Twitter meet iTunes,” calling it a “social network all about music.” Clearly, jobs was onto something, but Ping never found success in the Apple founder’s lifetime. Shortly after Jobs’ death, Apple shut down Ping in 2012, a rare flop for the iPhone maker. Apple later tried again with a social feature for musicians, Connect, which also didn’t last.
While there might have been an opportunity for that in the past, today we are 180 degrees at the other end. People want to talk about music in the same area where they get their news, engage with friends, or watch cat videos. This is what platforms also want.
Web3 has an opportunity to offer this. The idea of an Everything App is the mindset that should be operated from.
Digital Real Estate
To me, the analogy of real estate is ideal.
What happens when you have real estate? There is the ownership of a piece of land (and building) that is part of a larger whole. We often call these towns or cities.
These areas offer a multitude of services. Over time each area provides what their citizens need. For example, one does not have to leave town and fly to another city to do grocery shopping. People established businesses that provide that service.
The same is true for hardware items, vehicles, dental services, and most other things people require.
Web3 requires the same mindset.
A network is digital real estate. If that is the case, why do people have to leave to get their teeth cleaned? If that is the case, few are going to reside in that community. They are going to gravitate to where most of their regular services are provided.