Aggregation Theory

Before the internet, distribution was expensive and controlled by whoever owned the physical channel (a newspaper's printing press, a store's shelf space) — so suppliers had the power. Thompson's theory: online, distribution is nearly free, so power flips to whoever owns the relationship with the end user's attention and preference. Companies like Google, Facebook, and Amazon win not by owning supply (they often don't make the content or products themselves) but by aggregating demand — becoming the place users default to — which lets them dictate terms to suppliers, who become interchangeable ('commoditized') behind the scenes.