In Platform Capitalism, Srnicek analyzes the affordances of what he considers a new business model, distinct from Fordist vertical integration and post-Fordist flexible production, and its implications for the future of labor. Srnicek explains that platforms are simultaneously intermediaries and infrastructures. Platforms are multi-sided markets that bring producers and consumers together. They are infrastructures in the sense that they allow individuals to build applications on top of them. Platforms come with network effects: “the more numerous the users who use a platform, the more valuable it becomes for everyone else.” (Srnicek, 45) producing a tendency toward monopolies. A key strategy to generate of platforms is cross-subsidization, using revenue from one part of a platform to make other parts free, in turn incentivizing participation. Currently, the goal of platforms is to collect as much data as possible.
From the readings it is clear that platforms are comprised of core architectures which preclude neutrality; as a result, platforms are inherently political. Srnicek, in particular, identifies five main platform categories in the contemporary landscape, each type has its own dynamics and constraints: digital advertising (Google), cloud-computing services (Amazon), industrial IoT (GE), product rentals (Zipcar), and lean platforms (Airbnb). Importantly, the last category of lean, generally assetless companies is not profitable and Srnicek argues, likely faces imminent collapse. Srnicek asks what these companies have to do to actually make a profit and what ethical implications are at stake for each of these revenue-generating strategies. In the final chapters of the book, he examines the dominant mode, monopolization, as well as two alternatives: platform cooperatives and public platforms, ‘owned and controlled by the people’ and subsidized by the state. He does not see a clear path for either of these alternatives to actually compete with corporate monopolies, however, and ends the book with a grim future outlook.
Ed's comment (my comments seem to appear as Unknown): I also appreciated this reading and as resistant as I usually am towards general compartmentalizations, thought his five categories and his descriptions of them were actually quite useful to think through the idea of platforms today. What I found particularly interesting was the interdependence of these different types, such as the reliance of many lean platforms on cloud ones like AWS. As I'm writing my paper for this class on Streaming-Data convergence on Tinder and Spotify, I wonder how these links - Facebook (advertising) to Tinder (lean?) to Spotify (product) - contribute to his discussion around monopolization.
ReplyDeleteI also found Srnicek's chapter really helpful. While I thought of platforms as sites of public participation and surveillance, the text really demonstrates the very different ways they operate. It was also interesting to read about how platforms also function as infrastructures, not just areas of public exposure.
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