In today’s digital age, the internet is teeming with platforms and services that have captured our attention, for better or for worse. We often find ourselves using sites and apps that we may dislike or even despise. One prime example of this is Facebook, which faced widespread criticism following its involvement in the Cambridge Analytica scandal, yet boasts over 3 billion monthly active users. Similarly, despite public outcry over Elon Musk’s actions on Twitter, the platform remains relevant. This begs the question: why do we continue to use and support platforms that we are not fond of?
The Staying Power of Big Platforms
The continued dominance of major platforms, despite public discontent, reveals a certain inertia within the digital landscape. It seems that these platforms have become so deeply ingrained in our lives that we struggle to part ways with them. Even when alternatives emerge, they often fail to gain significant traction. So, what keeps us hooked?
The Challenge for Smaller Contenders
For companies attempting to disrupt the hegemony of Silicon Valley and challenge the dominance of big platforms, the task can feel disheartening. Smaller contenders often struggle to compete with the resources and user base of established giants. Matt Iliffe, CEO of Beyond, a company that optimizes product experiences, highlights the challenges faced by startups: “Smaller companies and startups have to first cut through the noise to raise awareness of their offering, which takes time, effort, and considerable resources.”
Public Perception and Safety in Familiarity
Beyond the hurdle of raising awareness, smaller companies also face the challenge of public perception. Established platforms offer a sense of safety and familiarity that makes users reluctant to switch. As Iliffe explains, “There’s ‘safety in established platforms.’ Effectively, better the devil you know than the one you don’t.” This tendency to stick with what we know contributes to the staying power of big platforms.
The Need for Radical Differentiation
To overcome the dominance of established platforms, smaller companies must offer something radically different. Nicki Sprinz, Global Managing Director of ustwo, a company that helps create and design new products, emphasizes the importance of standing out: “A new platform must be ten times better than the one it hopes to win users from. Or be radically new.” In other words, a copycat platform attempting to mimic the success of Twitter or Bandcamp is unlikely to succeed. Instead, companies must look beyond replication and strive for innovation.
A Case Study: The Battle Between Bandcamp and Artcore
To delve deeper into the challenges faced by smaller platforms, let’s examine the music retail industry and the competition between Bandcamp and Artcore. Bandcamp, widely beloved by musicians and fans, has a reputation for being artist-friendly. However, after being acquired by Songtradr and undergoing layoffs, it appears that Bandcamp’s artist-first approach is waning. This creates an opportunity for a competitor to emerge.
Artcore: A Challenger with a Comparable Service
Artcore, a London-based platform, aims to provide a broadly comparable service to Bandcamp. It offers musicians a place to sell their music with manageable commission fees. To understand the challenges Artcore faces, I spoke with Tom Burnell, the founder of Artcore. While Burnell didn’t disclose specific user numbers or sales figures, it is clear that Artcore is still in the early stages of growth with around 30,000 estimated website visitors in October. Despite the potential market gap left by Bandcamp, Artcore has not yet gained significant traction.
Cutting Through the Noise
The battle for market share between Bandcamp and Artcore highlights the difficulties faced by smaller platforms trying to compete with established players. Matt Iliffe emphasizes the need for startups to cut through the noise and raise awareness of their offering. This requires significant resources and effort to capture the attention of users who are already accustomed to using a familiar platform.
The Power of Differentiation and New User Experiences
To succeed in challenging established platforms, smaller companies must offer a unique value proposition and a differentiated user experience. According to Nicki Sprinz of ustwo, smaller companies can challenge bigger players by leveraging new technologies and providing a user experience that sets them apart. This echoes the success of Facebook, which disrupted MySpace by offering a noticeably different experience.
The Promise of Decentralization
One technology that holds promise for smaller businesses seeking to challenge the dominance of big platforms is decentralization. Decentralized platforms aim to shift power and control away from a few platform providers and give it back to users and developers. By utilizing technologies like blockchain, these platforms offer users ownership over their data and the ability to connect and share across various apps.
The Maturation of Decentralized Technology
Martina Larkin, CEO of Project Liberty, a body spearheaded by billionaire Frank McCourt to build a new decentralized internet, highlights the maturation process of decentralized technology. Larkin explains that the technology to create decentralized systems is still evolving, and it’s only recently that the opportunity to create sustainable and equitable platforms has emerged. Decentralized technology provides an alternative to the influence and manipulation often associated with big tech platforms.
The Challenges of Adoption
While decentralization offers potential solutions, there are significant challenges to its widespread adoption. One major obstacle is the ease-of-use factor. Established platforms like Twitter and Facebook have invested heavily in creating user-friendly interfaces and seamless experiences. Decentralized alternatives, such as Mastodon and Bluesky, are still less user-friendly, making it difficult to attract a broader audience. Without addressing this complexity, widespread adoption of decentralized platforms may remain elusive.
The Role of Middle Figures in Payments
Another challenge for decentralized platforms, particularly those involving financial transactions, is the reliance on a reliable middle figure. Platforms like Bandcamp, where money changes hands, often provide a sense of security and trust through established payment systems. While decentralization has the potential to disrupt traditional payment methods, the preference for a middle figure remains strong. Cryptocurrency, despite significant promotion, has yet to become a mainstream payment method due to concerns over reliability and familiarity.
Overcoming the Inertia: A Call for Innovation and Simplicity
While the current landscape may seem daunting for smaller platforms trying to challenge the dominance of big players, there is still hope for change. The key lies in offering something different and innovative. Platforms need to think beyond replicating existing platforms and consider new ways of delivering what users are seeking.
Importance of Simplicity and User-Friendliness
In the quest for innovation, simplicity and user-friendliness are paramount. Apple’s success, for example, can be attributed to its ability to make previously complex tasks easy for users. Smaller platforms need to demonstrate that they not only offer a superior experience but also provide a seamless transition for users accustomed to established platforms. Without addressing this simplicity factor, widespread adoption may remain a distant goal.
The Tipping Point: Disrupting the Status Quo
While big platforms may seem unassailable, there is a tipping point somewhere waiting to be discovered. By challenging the status quo and offering unique value propositions, smaller platforms have the potential to disrupt the market. Creative destruction, fueled by technological advancements, can empower smaller companies to challenge the might of established giants.