The author argues that platforms undergo a process called "enshittification," where they prioritize their own profits over user experience and business customers, ultimately leading to their downfall.
Abstract
The content discusses the evolution of platforms like Amazon, highlighting how they initially attract users by offering value but gradually shift focus towards maximizing profits at the expense of both users and business customers. This strategy results in monopolistic practices, high fees for sellers, and a decline in user experience due to excessive advertising.
The ‘Enshittification’ of TikTok
Stats
Today, Marketplace sellers are handing more than 45 percent of the sale price to Amazon in junk fees.
The company's $31 billion "advertising" program is really a payola scheme that pits sellers against each other.
The first five screens of results for "cat bed" on Amazon are 50 percent ads.
Quotes
"Platforms die when they abuse their users to make things better for their business customers."
"Amazon shifted to subsidizing suppliers as more marketplace sellers joined the platform."
How can platforms balance profitability without compromising user experience
Platforms can balance profitability without compromising user experience by focusing on creating value for both users and business customers in a sustainable way. One approach is to prioritize long-term relationships over short-term gains, ensuring that the platform remains attractive to users while also providing value to businesses. This can be achieved through transparent pricing structures, fair commission rates, and clear communication with all stakeholders. By maintaining a balance between generating revenue and enhancing user experience, platforms can build trust and loyalty among their user base.
Is there a way to regulate platforms to prevent monopolistic practices
Regulating platforms to prevent monopolistic practices involves implementing antitrust measures that promote competition and protect consumers. This can include enforcing laws that prohibit anti-competitive behavior, such as price-fixing or market manipulation. Additionally, regulators can require platforms to disclose their algorithms and data practices to ensure transparency in decision-making processes. By promoting fair competition and preventing monopolies from forming, regulators can create a level playing field for businesses while safeguarding consumer interests.
How does the concept of enshittification apply to other social media platforms like TikTok
The concept of enshittification applies to other social media platforms like TikTok when they prioritize profits over user experience and manipulate their algorithms to benefit advertisers at the expense of users. Similar to Amazon's evolution described in the context above, social media platforms may start by offering valuable services to attract users but then shift towards monetization strategies that harm user engagement. For example, TikTok could introduce paid promotions that push content from advertisers ahead of organic posts or implement hidden fees for creators seeking visibility on the platform. As a result, the overall quality of content on TikTok may decline as commercial interests take precedence over authentic user interactions.
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Table of Content
The Deterioration of TikTok's User Experience
The ‘Enshittification’ of TikTok
How can platforms balance profitability without compromising user experience
Is there a way to regulate platforms to prevent monopolistic practices
How does the concept of enshittification apply to other social media platforms like TikTok