Seven Rules For Internet CEOs To Avoid Enshittification

07:53

In a piece from January, Cory Doctorow outlined the enshittification lifecycle of online platforms:

Here is how platforms die: First, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die.

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This is enshittification: Surpluses are first directed to users; then, once they're locked in, surpluses go to suppliers; then once they're locked in, the surplus is handed to shareholders and the platform becomes a useless pile of shit. From mobile app stores to Steam, from Facebook to Twitter, this is the enshittification lifecycle.

Taking note of various platforms lighting themselves on fire recently, Mike Masnick offers a list of rules for the leadership of these platforms to follow to avoid turning into dumpster fires. Here's rule #3:

Create more value than you capture. This one is not mine, but Tim O'Reilly's, and it's one that constantly sticks with me. As you're developing a business model, the best way to make sure that you're serving your users best, and not enshittifying everything, is to constantly make sure that you're only capturing some of the value you're creating, and are instead putting much more out into the world, especially for your community. Your investors will push you to capture more and more of that value, but again, when you start chasing that, you're also spiraling down the enshittification curve.

IMO, some of what is going on with Twitter & Reddit is not enshittification per se, but more of a pushback against the power of their users. (I always think of Tron in instances like these. "I fight for the users!") I think these CEOs know on some level that they're making their product worse, but bringing their user bases to heel is worth the short-term headaches.

Tags: business · Cory Doctorow · lists · Mike Masnick · Reddit · Twitter

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