The lesson here is that the power lies with those who who have relationships with consumers. That distribution channel is quite possibly the single most valuable asset one can possess today. Kylie Jenner is ridiculously rich not because she has amazing products (I mean I don't know much about cosmetics but I can't believe they're 10x better than the next thing out there), but rather because she has direct access to a large audience and understood what that audience would be willing to buy.
This is really just a form of vertical integration/cutting out the middleman. Why sell ad space to companies who will use it to sell goods to consumers when you can instead just sell goods directly to those consumers?
The means of production used to be the most important thing - now it's the means of distribution.
This is really just a form of vertical integration/cutting out the middleman. Why sell ad space to companies who will use it to sell goods to consumers when you can instead just sell goods directly to those consumers?
The means of production used to be the most important thing - now it's the means of distribution.