The internet, with its zero marginal cost, has caused a significant unbundling in various industries, including newspapers, music, and television. Newspapers, once a bundle of different sections, have seen their classifieds, sports, and news sections dismantled by internet companies like Craigslist, ESPN, and Yahoo. The music industry has shifted from selling albums to individual songs and streaming services, thanks to iTunes and Spotify. Television, too, is experiencing a similar transformation, with Netflix and YouTube offering unbundled content.
The tech industry itself is not immune to this unbundling. It was once dominated by integrated companies that controlled both hardware and software, but the internet has enabled the separation of these elements. This has given rise to companies like Google, which focuses on software, and companies like Foxconn, which specialises in hardware.
Yet, despite this trend, there has been a counter-trend of rebundling. Facebook, for instance, has integrated various services into its platform. Amazon has bundled retail, digital media, and hardware. This rebundling is driven by the need for user attention and the monetisation opportunities it presents. Thus, the tech industry is characterised by a continuous cycle of unbundling and rebundling.
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