Trading for their own account

We see the same pattern at Amazon, which is aggressively pursuing authors for direct publishing on the kindle and seeking to displace publishers by making themselves the sole source for books on the device.

Ultimately, I think we see this pattern in the economic development of every innovation. When a new technology is introduced, there's a lot of green-field opportunity, and so much value is being created that there's no need to capture it all. But as the technology matures, the winners need to capture more of the total value being created. They gradually crowd out suppliers as well as competitors.

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Ultimately, I think we see this pattern in the economic development of every innovation. When a new technology is introduced, there's a lot of green-field opportunity, and so much value is being created that there's no need to capture it all. But as the technology matures, the winners need to capture more of the total value being created. They gradually crowd out suppliers as well as competitors.

Highlighted by tonycurzonprice

In technology, this has traditionally been about bundling; When Microsoft included disk compression in their operating system, or Apple bundled widgets, the primary victims of that bundling were the independent software developers. But by bundling source materials with the tools used to discover (Google) or consume (Kindle) them, it isn't just other search engines or ebooks that suffer; It's everyone trying to participate in the marketplace of ideas.

Highlighted by tonycurzonprice

You get a period of innovation and openness for a while, till the winners start taking more value than they create.

Highlighted by tonycurzonprice