Enshittification

Enshittification, also known as platform decay,[1] is the pattern of decreasing quality of online platforms that act as two-sided markets. Enshittification can be seen as a form of rent-seeking.[2] Examples of alleged enshittification have included Google Search, Amazon, Bandcamp, Facebook, Reddit, and Twitter.

Definition

Black-and-white photograph of a man with short hair and black glasses, wearing a face microphone.
Cory Doctorow, who coined the term enshittification in 2022, photographed in 2019

The term enshittification was coined by Cory Doctorow in a November 2022 blog post,[3] later republished in Locus in January 2023. He expanded on the concept in an article of the January 2023 edition of Wired, in which he explained that enshittification is how platforms die:[2]

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. I call this enshittification, and it is a seemingly inevitable consequence arising from the combination of the ease of changing how a platform allocates value, combined with the nature of a "two sided market," where a platform sits between buyers and sellers, hold each hostage to the other, raking off an ever-larger share of the value that passes between them.

According to Doctorow, new platforms offer useful products and services at a loss, as a way to gain new users. Once users are locked in, the platform then offers access to the userbase to suppliers at a loss, and once suppliers are locked-in, the platform shifts surpluses to shareholders. Once the platform is fundamentally focused on the shareholders, and the users and vendors are locked in, the platform no longer has any incentive to maintain quality. Enshittified platforms which act as intermediaries can functionally act as both a monopoly on services and a monopsony on customers, as high switching costs prevent either from leaving even when alternatives technically exist.[2] Doctorow has described the process of enshittification as happening through "twiddling"; the continual adjustment of the parameters of the system in search of marginal improvements of profits, without regard to any other goal.[4]

To solve the problem, Doctorow has called for two general principles to be followed. The first is a respect of the end-to-end principle, a fundamental principle of the Internet in which the role of a network is to reliably deliver data from willing senders to willing receivers. The second is right of exit, where users of a platform can easily go elsewhere if they are dissatisfied with it.[1]

Examples

The word gained traction in 2023, where it was widely adopted by journalists in reference to several major platforms discontinuing free features in order to further their monetization or taking other actions that were seen to degrade functionality.[5]

Amazon

In Doctorow's original post, he discussed the practices of Amazon. First, Amazon started selling goods below cost to build up a user base. Amazon then introduced the Prime subscription which would encourage users to shop more exclusively at Amazon. Second, now having many clients who used Amazon exclusively, this incentivised sellers to set up on Amazon, as Prime users were only searching Amazon for goods. Finally, Doctorow indicated that Amazon then began to focus on its shareholders by increasing profits and introducing fees. In 2023, 45% of the sale price of items went to Amazon in the form of various fees. He described advertisement within Amazon as a payola scheme, in which sellers are bidding against one another for search ranking preference, and identified that the first five pages of a search for "cat beds" were 50% advertisements.[2]

Bandcamp

This term was used retroactively to describe the 2022 sale of Bandcamp to Epic Games, and later when Epic Games sold Bandcamp to music licensing firm Songtradr in September 2023.[6] In October 2023, it was revealed that almost half of Bandcamp's staff were laid off, including many key members of the executive team who apparently "vanished", according to former employees. Following this acquisition, there was a large outpouring of grief and rage on social media from many former employees, users and artists who viewed Bandcamp as an essential service for niche and independent artists to release music while retaining profits from the sale of their work.[7] Bandcamp had also unionized in March of 2023, and Songtradr laid off most of the staff involved in forming the unionization, as well as those who were helping to negotiate fair terms. As of October 2023, Songtradr still has yet to formally recognize their union.[8] According to music journalist Philip Sherburne, writing for Pitchfork, by specifically targeting both the customer-support department and the editorial department for layoffs, Songtradr was signaling either ignorance or apathy for the reason Bandcamp had been successful.[6]

Facebook

According to Doctorow, Facebook offered a good service until it had reached a "critical mass" of users, and it became difficult for people to leave because they would need to convince their friends to go with them. Facebook then began to add posts from media companies into feeds until the media companies too were dependent on traffic from Facebook, and then adjusted the algorithm to prioritise paid "boosted" posts. Business Insider agreed with the view that Facebook was being enshittified, adding that it "constantly floods users' feeds with sponsored (or "recommended") content, and seems to bury the things people want to see under what Facebook decides is relevant".[9] Doctorow pointed at the Facebook metrics controversy, in which video statistics were inflated on the site, which led to media companies over-investing in Facebook and collapsing. He described Facebook as "terminally enshittified".[2]

Reddit

In 2023, Reddit announced that it would begin charging for API access, a move that would effectively shut down many third-party apps. The CEO, Steve Huffman, stated that it was in response to AI firms scraping data, though The Verge pointed out that the move was intended to increase revenue ahead of the platform's Initial Public Offering. This resulted in a blackout protest by moderators, though the changes ultimately went ahead.[10][11][12]

Twitter / X

The term was applied to the changes to Twitter in the wake of its 2022 acquisition by Elon Musk.[13][14] This included the closure of the service's API to stop interoperable software from being used, suspending users for posting (rival service) Mastodon handles in their profiles, and placing restrictions on the ability to view the site without logging in. Other changes included temporary rate limits for the number of tweets that could be viewed per day, the introduction of paid subscriptions to the service in the form of Twitter Blue,[13] and the reduction of moderation.[15]

See also

References

  1. Doctorow, Cory (2023-05-09). "As Platforms Decay, Let's Put Users First". Electronic Frontier Foundation. Retrieved 2023-09-15.
  2. Doctorow, Cory (January 23, 2023). "The 'Enshittification' of TikTok". WIRED. Condé Nast. Retrieved 1 June 2023.
  3. Doctorow, Cory (November 15, 2022). "Social Quitting". Retrieved October 23, 2023.
  4. Doctorow, Cory. "Twiddler: Configurability for Me, but Not for Thee". cacm.acm.org. Retrieved 2023-09-15.
  5. Multiple sources:
  6. Sherburne, Philip. "Is Bandcamp as We Know It Over?". pitchfork.com. Retrieved 2023-10-18.
  7. Gach, Ethan (2023-10-16). "Epic Games' Messy Bandcamp Sale Ends With Mass Layoffs [Update]". Kotaku. Retrieved 2023-10-18.
  8. Council, Stephen (October 17, 2023). "Every member of Bandcamp union bargaining team was laid off in huge cuts at Oakland firm". SFGate. Retrieved October 18, 2023.
  9. Zitron, Ed (March 27, 2023). "Google, Amazon, and Meta are making their core products worse — on purpose". Business Insider. Retrieved October 23, 2023.
  10. Plunkett, Luke (June 28, 2023). "Minecraft Subreddit Loses Support From Devs Who Disapprove Of Reddit Changes". Kotaku. Retrieved October 23, 2023.
  11. Breland, Ali. "Why Reddit is destined to turn to crap". Mother Jones. Retrieved 2023-09-15.
  12. Ashworth, Boone (17 June 2023). "The Reddit Blackout Is Breaking Reddit". Wired. Retrieved 18 June 2023.
  13. Ball, James (July 4, 2023). "The slow, sad death of Twitter". The New European. Retrieved July 5, 2023. That means lots of blue ticks stop paying – but everyone else is forced to read the low-quality content that the remaining blue ticks produce. This is what is powering the enshittification of Twitter.
  14. Naughton, John (11 March 2023). "Users, advertisers – we are all trapped in the 'enshittification' of the Internet". The Guardian. Retrieved 1 June 2023.
  15. Masnick, Mike (July 5, 2023). "It Turns Out Elon Is Speedrunning The Enshittification Learning Curve, Not The Content Moderation One". Techdirt.

Further reading

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