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sizes="(max-width: 600px) 100vw, 600px"}The idea is that the economics of the Internet work for two types of businesses:
- Massive businesses that can take advantage of the Internet’s scale to reach a huge number of people very cheaply and efficiently.
- Niche businesses that can take advantage of the super low costs involved in running an Internet business to reach a very narrow niche of people all over the world very cheaply and efficiently.
(…)
With this audience there are two ways to maximize revenue:
- You can try to make a little bit of money from a lot of people – this entails getting a little bit of money from everyone on the curve.
- You can try to make a lot of money from a few people – this entails maximizing the gain from the people on the left side of the curve.
(via Dear Zoë Keating: Tell YouTube to Take a Hike – Stratechery by Ben Thompson )
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