The document discusses the rise of major tech companies (FANGs) and their influence over digital distribution and discovery. It notes that FANGs like Google, Facebook, Amazon, and Netflix have become the new "distributors" since the internet lowered distribution costs. This shifted the barrier to entry from distribution to discovery. As a result, FANGs now have outsized influence as the gatekeepers of discovery and the "front door" to different industries online like shopping, entertainment, and information. The document suggests content creators must differentiate themselves and target niche audiences to break through in this environment dominated by FANGs.

1. FANGs.
The Front Door to the Internet
6/26/2016

3. Back in the day, before the
internet...

5. the power belonged to a handful
of “distributors.”

7. Distribution was expensive to
scale and transactions were
costly.

8. https://stratechery.
com/2015/selling-feelings/

9. Companies made money by
integrating backwards with
suppliers.

10. https://stratechery.
com/2015/aggregation-
theory/

11. But then the internet came along
and flipped everything on its
head.

13. New companies emerged, using
tech to reshuffle the power of
the “distributors.”

14. Google abstracted power from publications by making individual articles and
pages accessible via search.
Facebook abstracted power from media by allowing advertisers to target
customers directly.
Amazon abstracted power from retailers by making it extremely easy to
purchase anything on the web.
Netflix abstracted power from broadcasters by making its entire library
available at any time.
Snapchat abstracted power from TV providers by making interesting content
available whenever you have a second of attention.
https://stratechery.
com/2015/aggregation-
theory/

15. The internet made the
distribution of digital goods free
and moved transaction costs to
zero.

16. https://stratechery.
com/2015/beyond-
disruption/

17. This enabled companies to
integrate forward with users at
scale.

18. https://stratechery.
com/2015/aggregation-
theory/

19. As a result, users became the top
priority, and the user experience
the key differentiator.

21. This paradigm shift favored
internet companies who focused
on creating a virtuous cycle for
growth.

22. https://rctom.hbs.
org/submission/amazon-the-cycle-of-
victory/

23. And all of this happened at a
scale never seen before...

24. http://ben-evans.
com/benedictevans/2015/9/1/forget-
about-mobile-internet

25. Mobile empowered platforms to
profit by owning the relationship
with every user.

26. https://stratechery.com/2015/popping-
the-publishing-bubble/

27. The companies that were able to
aggregate the most users became
the new “distributors” in town.

28. 54 MILLION
Prime Members
100 MILLION
Hours streamed
per day
2.3 MILLION
Searches
per second
10 BILLION
Daily Video Views
1 BILLION+
DAU

29. Facebook is now the internet
homepage with publishers as the
serfs in the kingdom
https://stratechery.com/2016/the-
fang-playbook/

31. Amazon is capturing all online
sales as 3rd-party merchants use
Amazon for both discovery and
fullfillment
https://stratechery.com/2016/the-
fang-playbook/

33. Netflix is driving the shift from
TV to streaming as they
stockpile money to make their
own original content
https://stratechery.com/2016/the-
fang-playbook/

35. Google has influence on any
business that wants their web
page to be found via search
https://stratechery.com/2016/the-
fang-playbook/

37. Snapchat is becoming the first
place our attention turns to the
moment we crave entertainment
https://stratechery.com/2016/the-
fang-playbook/

39. But remember how the internet
moved distribution costs to
zero?
https://stratechery.com/2016/the-
fang-playbook/

41. An unintended consequence was
abundance.

42. https://redef.com/original/age-of-abundance-how-
the-content-explosion-will-invert-the-media-industry

43. The barrier to entry thus shifted
from distribution to discovery.

44. https://stratechery.com/2015/the-
stratechery-2015-year-in-review/
DISTRIBUTION DISCOVERY
Pre-Internet Post-Internet

45. So what does discovery look like
in the world today?

47. Well, when you become the
front door to your industry, you
have a profound influence.

48. INTERNET SHOPPING ENTERTAINMENT INFORMATION ATTENTION
https://stratechery.
com/2015/aggregation-
theory/

49. FANGs aggregation of users has
positioned them to play traffic
kingmakers for the foreseeable
future.

51. So we must understand how
FANGs discovery currently
works.

53. Discovery is happening in three
distinct ways.

54. Algorithms Hand-Picked
Selections
One-off Recs &
Shares
https://redef.com/original/age-of-abundance-how-
the-content-explosion-will-invert-the-media-industry

55. Curation is also becoming more
and more important.

57. We are human after all.

58. http://waitbutwhy.com/2013/07/7-ways-
to-be-insufferable-on-facebook.html

59. Influence on the web is being
accelerated by social graphs on
the platforms.

61. But this also created new
opportunities for brand building.

63. So what does that mean moving
forward for branded content?

65. We are heading in the direction
of a bifurcated world of
abundance.

66. https://alexdanco.com/2015/12/17/taylor-swift-ios-and-the-
access-economy-why-the-normal-distribution-is-vanishing/

67. Either you care about content, or
you don’t.

68. https://alexdanco.com/2015/12/17/taylor-swift-ios-and-the-
access-economy-why-the-normal-distribution-is-vanishing/

69. So how do you get people to care
about your content?

71. You need to truly differentiate
to breakthrough.

72. http://www.fastcompany.
com/46049/praise-purple-cow

73. Typically the easiest way to
differentiate is to segment and
go niche.

75. Focus on crafting a campaign
that forces you to be precise
with messaging and targeting.

77. And if you don’t know what
resonates with your audience,
test and learn to find out!

78. http://venturebeat.com/2015/05/06/build-measure-learn-
doesnt-mean-throwing-things-against-the-wall-to-see-if-they-
stick/

79. After you’ve dominated a niche,
only then can you expand to
another, larger audience.

80. LAND
EXPAND

81. Let’s be honest, you can’t make
something that everyone likes.

83. But often, the specific can feel
universal.

84. https://soundcloud.com/offcamera/58-richard-linklater

85. So focus on creating content for
an audience that truly cares
about what you have to say.

87. But just remember that you’ll
have to go through FANGs
to get to them.

89. Thank you.
@jman4190