The Internet: cutting out the middleman and creating platforms for regulatory arbitrage

This is today's daily post. It's going to be all about technology. To start,  I want to focus in on a theme: the deflationary impact of the Internet. Since I have a lot of ideas here, I may make this into a thematic post later.
1 Big Thing: The Internet cuts makes it easier to cut out the middle man
In July I wrote about how data-only platforms make unbundling easier. Check out that post here. The upshot of unbundling is lower profit margins for incumbent businesses. And ultimately that's a good thing for the customer.

I mentioned music as a perfect example of how unbundling worked with iTunes and why that's hurt the music industry's profits. But there are other important Internet phenomenon that reduce margins: one is the direct sales model, sometimes known as peer-to-peer sales. Another...


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