Podcast Notes Key Takeaways

• The smartphone is the true personal computer:
  • “You have this device with you that has a large enough screen to do work done is small enough to be pocketable” – Ben Thompson
    • Expect to see more  specialized devices like AR glasses and smartwatch in the future, but the smartphone will still be the main device people use
• What makes a company an aggregator:
  • Has relationships with users
  • Zero marginal cost of serving users
  • Decreasing acquisition costs over time
• Spotify’s master plan to take over the podcast space:
  • “They’ll say, look, we have all these customers, we monetize better because we understand these customers better. You need to come onto our platform and use our superior, we will monetize you better. And then suddenly they become the center of this where they have a critical mass of users who they understand better and they pull podcasters on and start getting this sort of a virtuous cycle and becomes sort of the center of podcasting.” – Ben Thompson
• Apple had the opportunity to do this but they passed on it: 
  • “ iTunes doesn’t host podcasts. A lot of people don’t realize this, but it’s sort of the directory where everything is and the more important thing is the Apple podcast player is the biggest podcast player. Had Apple chosen to leverage that particularly a couple of years ago, they could have built this whole thing, built an ad network, but…it’s just not what Apple sort of does and so they sort of just let it be” – Ben Thompson
• Disney is able to charge a lower subscription fee for their service than Netflix because Disney can monetize their customers in more ways than Netflix (ex: cruise lines, amusement parks, etc.)
• Ben is bullish on local journalism but only if they report on important local events instead of constantly posting non-essential articles
  • “I don’t need more content. What I’m looking is to feel informed and you deliver the experience of feeling informed oftentimes by telling someone nothing here, go spend your time somewhere else and you’ve actually checked that.”– Ben Thompson

Read the full notes @ podcastnotes.org

My guest today is Ben Thompson. Ben is the author of my favorite business strategy newsletter called Stratechery. He’s also the host of the exponent podcast, and now the Dithering, a podcast he recently launched with John Gruber. I think Ben is among the most interesting business analysts in the world, and I’ve learned from and directly applied many of his ideas. We cover many of the major concepts he’s introduced over the years, including his well know aggregation theory. I think that to understand how the internet has changed the business world for good, you must read Ben and follow his thinking. I’m excited to finally have him as a guest on the show. Please enjoy our conversation.

For more episodes go to InvestorFieldGuide.com/podcast.

Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.

Follow Patrick on Twitter at @patrick_oshag

 

Show Notes

(01:26) – (First question) – Companies that are built for the next disruption

            (1:32) – The End of the Beginning

(9:58) – Aggregation Theory and the Smiling Curve

(13:18) – Steps to creating an aggregator

(19:46) – Pattern of successful aggregators or luck?

(24:34) – How aggregators interact with suppliers and consumers

(30:49) – Taking on other aggregators

(34:09) – Platform vs aggregator in the scope of Shopify vs Amazon/Walmart

(40:55) – The Moat Map

(46:16) – Value chain thinking and profitable business models

(51:58) – Future of media and independent content creator’s vs bundles

(56:07) – Bundling independent creators

(1:00:37) – The infrastructure layer of technology and software companies

(1:02:35) – His thoughts on gaming platforms

(1:06:13) – The atoms vs the bits in the tech world

(1:12:18) – What he’s learned from covering Netflix

(1:13:46) – Kindest thing anyone has done for Ben

            (1:15:56) – Stratechery Podcast

 

Learn More

For more episodes go to InvestorFieldGuide.com/podcast. 

Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub

Follow Patrick on Twitter at @patrick_oshag