Better Aligning Value Creation & Value Capture: The Inevitability of Clubhouse

Better Aligning Value Creation & Value Capture: The Inevitability of Clubhouse

The internet has revolutionized the way we consume media and created new opportunities for value creation and capture. In the pre-internet era, the best business model was to charge for content. However, with the rise of the internet, the world has become more like video games, where the base layer is given away for free, and viral marketing is utilized to monetize the complement.

Unfortunately, the music industry, for example, has been undermonetizing compared to other industries like video games. Crypto has emerged as a solution that enables musicians and creators to directly capture the value they create. With crypto networks, artists can sell to their audience and charge them in a granular way, resulting in more financial incentives and a larger fanbase. This shift allows for community ownership and network alignment consistent with capitalism.

The democratization of media on the internet has been a significant development. The blog, as the granddaddy of independent publishing, allowed anyone to publish their thoughts to the entire world. This led to an explosion of content and shifted value to entities that could help consumers find what they were interested in. Aggregation platforms like Google, Instagram, and Spotify emerged to cater to consumers' needs by curating content.

The next step in media transformation was the creation of something entirely new that was not possible before. Twitter, with its accessibility and easily-consumable stream, became more interesting than most blogs, leading to a virtuous cycle of more consumers and creators. Platforms like Instagram and TikTok followed suit, combining customization and ephemerality to create engaging content.

Podcasts, popular as they may be, are still stuck with infrastructure and business models from the mid-2000s. While host-read podcast advertising leverages authenticity, charging listeners directly may make more sense in the long run. However, the commitment required from listeners limits the potential for growth in the podcast industry.

Enter Clubhouse, the latest transformative platform in the media landscape. Clubhouse makes it significantly easier to create and listen to live conversations. The live nature of audio consumption adds immediacy and vibrancy to conversations. The key to Clubhouse's success lies in honing its algorithms to present listeners with conversations that are interesting to them, addressing the issue of choice paralysis.

Clubhouse's ease of dropping in and out of conversations aligns perfectly with the convenience provided by AirPods. However, concerns have arisen regarding the privacy and security of user data. Transparency in data transmission and potential access to user audio by third parties like the Chinese government raises red flags.

While Clubhouse presents an exciting opportunity for creators and listeners, it could pose a challenge to platforms like Spotify, which have heavily invested in podcasts. The subscription model may be Spotify's saving grace in the face of potential disruption.

In conclusion, the internet has ushered in a new era of media consumption and value creation. Crypto networks provide artists and creators with a direct means of capturing the value they create. Clubhouse represents the next step in media evolution, with its live audio conversations and smart algorithms. However, privacy and security concerns need to be addressed to ensure a positive user experience.

Actionable Advice:

• 1. For artists and creators, explore the potential of crypto networks to directly capture the value you create and engage with your audience on a granular level.

• 2. As a consumer, embrace the ownership economy by supporting platforms and creators that align with your values and offer community ownership.

• 3. Platforms and businesses should prioritize user privacy and security to build trust and ensure a positive user experience.