“Positive feedback is a more potent force in the network economy than ever before”, say Shapiro & Varian in 1999. Almost 14 years later this still applies. Digital media is present everywhere and it is allowing global interconnection. In these textual space I would like to talk about two main concepts I learned in my second class as a member of COMMLead: digital media businesses and the importance of networks.
Digital media is growing every day, people is trying to connect to each other through this intangible technological network. Businesses are looking for a space to connect to new consumers, or to find new ways to reach their current customers. Social video platforms such as Maker are looking for a market space by creating content to specific markets. The thing about new markets is that you have to create community before even trying to sell something. Here is when the concept of networks comes into place, people need to feel involved, part of a “bigger something”. Positive feedback becomes then the more wanted price to success in this industry.
The economics of networks requires people who are not afraid of taking risks, that are willing to learn of their mistakes and that will try again. The digital media industry is not just about being an excellent storyteller and putting great content out there, is knowing in what places you can find the people who will connect with your story.
This new way of seeing economics through networks could be presented as taking the best out of new technologies, new screens, new platforms and content creation. But during this second class I realized that is about letting people find themselves in a digital space where they can meet new people and create their own content. It’s not about telling people what they want as a business, but letting them tell you what they need (UGC).
Shapiro, C. & Varian, Hal R. (1999). “Information Rules. “Networks and Positive Feedback”. Harvard Business School Press. P- 173-225.