Wednesday, December 13, 2017

Winner Take All in Virtually All Parts of Internet Ecosystem

One salient feature of the internet ecosystem is that it tends toward “winner take all” market structures, whether one looks at the application, operating system, device or access parts of the ecosystem.

In the application space, advertising revenue is dominated by Google and Facebook, which claim 63 percent of U.S. digital ad revenue in 2017. In the operating system market, Android and Apple iOS are the leaders, with 99-percent market share. The device portion of the market is the least concentrated , although Apple and Samsung have earned most of the profits.  

Mobile and fixed network access markets likewise are oligopolies, in virtually every market. Fixed markets in many cases remain virtual monopolies, while mobile markets tend to be oligopolies.




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