Jonah Peretti, founder and CEO of BuzzFeed, explains how technological capabilities and network effects establish modern barriers to entry for digital publishers.
“Having a site that runs quickly, having an advertising model that works on mobile having a good data science team that can give you better insights in terms of what people are sharing and what people are engaging with. Certain network properties, once you have a certain level of scale, there's Things like preferential attachment and network theory that, that suggests that it becomes easier to reach an audience. And so all those things together, people I don't think understand very well, but it does make it possible to build a defensible business.”
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Disclosure
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“And that's why we've been able to grow so quickly generate profits and in, while simultaneously investing in foreign correspondence and investigative news team and other things that people thought weren't possible for internet companies to invest in.”
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AssertionNot checkable as stated
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Insight
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