In This chapter, Nick Srnicek examines the raw material on which the system Focused in the 21st century: data. Srnicek demystifies the critique of data Collection as a monitoring method. On the one hand, he warns that caution Should be exercised in the belief that data collection and analysis is an Automated and uncomplicated process. On the other hand, it lists the processes That make them profitable. The real problem with capitalist companies is that Old business models were not well designed to extract and use data. A different Business model was needed and platforms emerged. The platforms became an Efficient way to monopolize, extract, analyse and use the increasing amounts of Data being recorded. There are 5 different types of platforms and all of them Have 3 characteristics in common. The first is that instead of having to build A market from scratch, a platform provides the basic infrastructure to mediate Between different groups. The second feature is that they produce and depend on Network effects: as the number of users increases, the value of that platform Increases. The third characteristic is cross-subsidisation: one branch of the company reduces the price of a service or a product while another branch raises Prices to cover these losses (free email to attract users and paid advertising).
Advertising Platforms: These platforms are the first attempts to build a Model suitable for the digital age and emerged with the bursting of the dot-com Bubble. The data extracted changed from a way of improving services to a way of Raising advertising revenue. These platforms appropriate the data as raw Material. On these platforms, revenue is generated through the extraction of Data from the activities of online users, the analysis of these data and the Auctioning of advertising space to advertisers. They are currently the most Successful of the new platform businesses, with high revenues, important Benefits and vigorous dynamism. Google is an example of this platform.
Cloud Platforms: These platforms are the step that has consolidated The platform as a unique and powerful business model. The history of corporate Cloud rental begins with e-commerce. To grow as an e-commerce platform, it Seeks to gain as many users as possible through cross-subsidies. Quick and Inexpensive delivery is one of the main ways to attract users to the platform For income elsewhere. An example of this platform is Amazon.