Web3: The Amazon Model
Whether you love or despise Amazon, you have to be in recognize of what they are doing. This company is reaching its tentacles into many different areas. This is also providing a model for Web3 to follow.
What is interesting is that few of us are even aware of all that Amazon owns. It is a company that is interconnected in ways that leverages all it does. Here is where a Web3 ecosystem like Hive should take note.
Amazon is no longer simply an online retailer. In fact, it is involved in so many different things that it could be a market leader in half a dozen different industries.
Just take a look at the infographic of what is owns.
Large Number of Services
Let us start simply by looking at the different sectors that Amazon is involved with.
- Media and entertainment
- E-commerce
- Cloud computing
- Grocery
- Logistics
- Healthcare
- Technology
- Consumer devices
- Household services
If those were simply subsidiaries, it would be an impressive list. Then we have the fact there are a multitude of entities below that.
Web3 discusses the idea of social media and entertainment. For that reason, let us focus upon that.
Here is a list of what Amazon holds there:
- MGM Holdings
- Twitch
- Audible
- GoodReads
- IMDb
- Box Office Mojo
- Prime Video
- YES Network (15% ownership)
- Echo
- Wondery
- Brilliance Publishing
- ComiXology
- Freevee
- Graphiq
- Kindle Direct Publishing
- University Esports
- Amazon Music
- Amazon Publishing
- Amazon Studios
To start, I bet a few of those companies being owned by Amazon came as a surprise. Also, notice how they are in so many different areas that domination could be in the future. While the competition such as traditional broadcasters and movie studios is huge, Amazon is pulling money in from a wide range of areas. Of course, we are only dealing with this aspect of the business, ignoring cash cows such as cloud.
This is a broadcast and entertainment empire in the making. Not only do we have the networks and production studios, look at the number of entities that are data repositories. Of course, the company is leveraging this for ever increasing revenues.
Amazon is offering a large number of services to anyone within the ecosystem. We can expect they will keep enhancing what they offer to users.
Conflict of Interest
We have discussed the idea of a conflict of interest on a number of occasions. When it comes to trust, how can we not question it when looking at this list.
MGM is now property of Amazon. This is combines with Amazon Studios. IMDB and Box Office Mojo are sites that provide information about movies and televisions shows. They also contain reviews along with user ratings. Do you see how there might be a conflict? It is in Amazon's best interest for people to be viewing the films in their portfolio. This will only enhance the value when it comes to licensing deals.
Even if there is no monkeying around with the numbers, we have a situation where independence is not part of the equation. The information people are accessing to make decisions is certainly in question.
To me, this is a grand opportunity for Web3.
We often discuss the idea of YouTube and other social media. While that is a decent mental framework, my view is Web3 should concentrate on simply duplicating parts of Amazon.
Building Amazon on Web3
Naturally, this is not a centralized entity. Nor it is something put together by a single team of people. Instead, we are dealing with a mental construct of how to proceed.
Web3 is in dire need of services. This is something that is lacking. One could make an argument that we see some in the financial arena and that could be the case. However, outside of that, we are severely lacking.
For example, where can you go for music on Web3? We know the Web 2.0 sites are really the only choice. How about video? While there are options such as 3Speak, we are still dealing with YouTube for social video.
Look at the entertainment list and bring up a comparable Web3 option. Sadly, there are none.
While infrastructure is still being constructed, this is going to be the next phase of Web3 development. Even if we isolate this particular sector, building alternatives is crucial.
Of course, if we turn the conversation to cloud and artificial intelligence, we open up another can of worms. At the core, we are dealing with the storage of data. Amazon owns their servers whereas Web3 is decentralized. Certainly, we are dealing with different capabilities but the concept is the focus.
By adopting the mindset of building "decentralized cloud", even if for text, we start the process of "thinking like Amazon". To be honest, this is how most of the major technology companies operate. They know the value of data.
We also have IPFS. This is another option that can be leveraged for this conceptual framework. Here is where the storage of video, images, and audio can occur.
The Power of Networks
What we are really discussing is the power of networks. Amazon is a networks (actually a series of them). It developed an ecosystem where it seeks to get people in and then have them utilizing more services.
The subscription model approach is very powerful. They entice more users into a monthly payment simply by offering more options under the Amazon Prime membership. It is to the point where anyone who regularly uses Amazon services is a fool not to have the subscription. The value is simply too great compared to the price.
Web3 is a bit different. At the base layer, we are dealing with the coin as the difference maker. Unlike Amazon where the majority of the users have no stake, with Web3 networks, they do. It is said that the basis of Web3 success will be the community. This is not outlandish since that is actually the key for Amazon. What separates the two is stake.
As stated in the past, we are entering a world where networks will become abundant. Presently, Amazon and a few other mega-corporations control the Internet. We have a handful of dominant networks that we all gravitate to. Web3, due to the underlying technology, is going to change this.
Here is where the Amazon model enters. We are looking to build out an ecosystem like Amazon. This is a general framework that we all can utilize.
Under this premise, it is a matter of looking at the list and filling in the blanks.
Posted Using InLeo Alpha
I am really digging this recent Amazon analogy of yours. Many folks overlook the fact that they began as an online bookseller. Most of their original infrastructure (and what later became AWS) was to accommodate the selling of books.
Yep. They really have expanded into areas that few expected. What makes it so powerful is they leverage things against each other for greater gains in value for the totality of their ecosystem.
It also took them six years to turn a profit. The fella was nothing if not dedicated.
6 years? Amazon was basically walking the line of lack of profitability for 20 years. It was only in the last 6 that it exploded.
Market share is what the company was after. Now, AWS is the largest component of its profitability, not the retail.
So it is a great lesson on who to proceed, at least from a mental framework standpoint. We look at building Web3 options, we will be better positioned.
Yeah six years and I think it was barely out of the red and into the black. That was still in the book selling period I believe.
EDIT: Yes it is an awesome model for Web3 in many ways... hence why I like the analogy.
This is just a fact tho a sad one when it comes to entertainment like videos and music we still look back at web. 2 and that is why Amazon will not be easily built on web3 because of limited service.
Great analogy with Amazon being a networks ecosystem and for sure we could learn out of it and try to bring some models also on the Hive blockchain.
All these major technology companies fall into that category. It is why they can sustain such high growth rates and have so much value on the market.
They understand the impact of different layers of networks.
Obviously, hive still have a lot to learn from a. Lot of big organisations and only if we can do that, we will grow massively this year
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Wow, I only thought of Amazon as an online retailer to contact when one needs some stuff or to advertise your products. I didn't know we could get all these that you are analysing from it. Thank you for this. It will certainly be helpful as we explore the Web3 system.
Each time someone watches Netflix, they are on Amazon (AWS).
Do not think they are just an online retailer, they are much bigger.
Amazon is a media company. What it sounds like you're saying is that you think Hive should expand into diverse areas of media and publishing. If so, how is this going to happen? One could put forth a proposal to the community to see if anyone is interested in making a bid to buy a business asset, but who will manage it once it is owned by the community?
there were economic systems within politics in some parts of countries, where everything was owned by community. I can think of few in Spain and Yugoslavia in 1970s. As much as I know, those were managed much better as private, because everything was managed by everyone and everyone had an income from profit, not just the manager. But surely there are many more countries.
Those kinds of things seem to work better in other countries, but not so much in the U.S. Of course, Hive is international and that might make a difference. But the point I was making is there should be some sort of mechanism for such things. If that's the way the community wants to go, perhaps a DAO set up specifically for that purpose would serve it well. Or there could be another way.
Buying Web 2 makes no sense in a web3 world. We have to build our own.
Get out of the centralized thinking mindset. That is what is stopping the ability to envision the innovation that can come from Web3.
Starting around 2001...the west has fallen into pure fascist system, where small companies are eaten by large whales, which are also funded by hedge funds, big banks, and state fund. Forget about small private shops at the end of the street or mom'n'pops selling their own products... You are with top 10 companies or you die
It is the nature of networks. Understanding that gives insight as to why the last 20 years unfolded the way they did. It really has nothing to do with government, hedge funds or anything else that people point to.
Technology operates according to clear paths and patterns. This is nothing different. The key to changing this is to alter the networks.
That is the true benefit to Web3.
Wow! Never knew amazon was this broad, they just keep on occupying in silence. I guess web3 needs to learn from amazon, building strong ecosystem in silence that will have the needed future resilience. If a centralized system can go this far, I think web3 decentralized systems can do even better. Happy new year friend
I knew Amazon had a lot of other side businesses, but I didn't realize it was this much. Seeing how much exposure they have in different industries really show how powerful the Amazon brand is. Since the history of Amazon is publicly available, Web3 can use it as a guide, use what works, and improve on what they can.