Friday, September 13, 2013
An Illustration of How Speed Transforms Internet Markets
Though there are other issues at work, a comparison of AOL dial-up customers and Netflix customers illustrates the way that Internet access speed can affect business models. Simply, broadband enables bandwidth-intensive apps, especially video. You can see that in the growth of Netflix.
To be sure, it is a complicated change. AOL's walled garden of content fell out of favor compared to the open Internet. Also, AOL had early success because most U.S. residents were new to using the Internet, and AOL offered a simple way for people to get online.
These days, "always on" features of the broadband approach to access (typically with Wi-Fi available) mean people do not actually have to do much of anything to "get online."
Still, you get the point: as access speeds have climbed, new apps are conceivable.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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