Digital Capitalism

How Big Tech dominates an internet that was supposed to be bottom up, competitive, nodeless, networked and decentralised.

Zoltán Pogátsa

Feb 10, 2024

Tech companies head the list of most valuable global firms.

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As well as most valuable global brands:

A key conglomerate is Meta (formerly Facebook), now owning Facebook, Instagram and various other apps.

May be a graphic of text that says 'Reality Labs 1.9% f 98.1% Adver Advertising Includes 0.7 Other Renu Revenue Fiscal a end :Dec31,2022 Revenue by Region U.S. Canada 43.0% 00Meta $117B Total Revenue 1% $23B Net income Meta Asia Pacific 23.8% September 30th had monthly users crossl platforms, to nearly alf globa population. Europe 22.9% Rest World 10.3% Kfilings, U.S. Securities and Exchange Commission'

Another one is Microsoft, in whose case the traditional Windows and Office software packages only account for about a third of revenues. Cloud and servers have by now become the largest share.

May be a graphic of text that says 'Other Dynamics 0.1% Devices Enterprise Services Search /News Ads 2.6% 2.6% 3.6% Bing 37.7% Server Products Cloud Services 5.8% Revenue Fiscal Revenue by Region 2023 Linkedln 7.1% U.S. 50.4% Gaming Microsoft 7.3% $212B Total Revenue $72B Net income Windows CEO Satya Nadella refocused Microsoft's strategy cloud business 2014, which grownfo since, the argest revenue esegment 10.1% Ûof World 49.6 49.6% 23.0% Office Products Cloud Services Û U.S. and Exchange Commission'

In the case of Alphabet (Google), search is still number one by far. YouTube and cloud services are about a tenth each.

May be a graphic of text that says 'Hedging Gains Other Bets 0.7% 0.4% Google Cloud 9.3% 57.4% Google Search Other Google Other Services Revenue Fiscalye end :Dec31, 2022 Revenue by Region 10.3% U.S. 47.9% YouTube Ads 10.3% Alphabet $283B Total Revenue +10% $60B Net income Gemini, Google's "most powerful date could reduce traffic to websites disrupt Google Search, Alphabet's Alphabetsbiggestrevenuesegment. oiggestrevenuesem. segment. EMEA 29.2% 11.6% Google Network APAC 16.7% Other Americas 6.0%'

The next Big Tech firm is Apple, where the iphone is about half.

May be a graphic of text that says 'iPad Mac 7.4% 7.7% 52.3% iPhone Revenue :Sep30 2023 Revenue by Region Wearables Apple Watch, Airpods 10.4% Americas 41.9% ¿Music $383B Total Revenue $97B ecome útv Net sales foral Apple products declined, ined, Macs seeing the biggesfa by27% Europe 24.4% Pay Services 22.2% Greater China 18.7% Japan .8% Rest Asia Pacific .2% 2022/2023 10-K filings, U.S. Securities Û and Exchange Commission'

Actually, while earlier it had been seen as a disruptor, Apple has not had a significant new product since the launch of the iphone, now decades ago. An increasing share of its revenue comes from it monopoly over the Apple Store, as discussed in a Pogi Podcast episode on Big Tech chokepoint capitalism.

May be a graphic of text that says 'Apple's Product Revenue 2007-2023 Since the iPhone's launch in 2007, Apple's product launches have continuously diversified the company's revenue sources. ÛATO The iPhone's Ûh”of Aeproduct product evenue 2015 at66% the year the iPhone iPhone $200.6B In2007, Macs (43%) iPods (35%) Apple's revenue. services fell smallest revenue Services 8.5%. They've since more $85.2B than doubled 22% 2023. iCloud tv AppStre iPad launched 11 Accessories $39.8B The Apple Watch and Airpods launched 2015 and respectively. iPod discontinued 2007 2010 Source: Apple Mac $29.4B filings 2015 2020 iPad $28.3B 2023 COLLABORATORS RESEARCH WRITING Niccolo Conte /visualcapitalist Joyce @visualcap visualcapitalist.com'

For Amazon, online stores (with Prime) are around half of revenues. Ads are almost a tenth!

May be a graphic of text that says 'Physical Stores Other 0.8% Subscription Ser vices prime 3.7% 6.9% Ad Services 42.8% Online Stores Revenue Fiscaly d:Dec31 2022 Revenue by Region 7.3% aws Amazon amazon 15.6% Services U.S. 69. 69.3% $514B Y+9% Total Revenue -$2.7B Net income Revenue from mazon's dvertisingservices tising and (Amazo have both nearly doubled the years. ast Germany 6.5% 22.9% K5.9% Japan 4.7% Third Party Seller Services Rest World 13.6% Û'

Most popular apps

Meta’s apps rule downloads, as well as Chinese ByteDance’s TikTok. Shopping sites such as Amazon and Chinese Shine follow.

Young peeople use Facebook far less. They use YouTube and TikTok more frequently.

May be a graphic of text that says 'SOCIAL PLATFORM USAGE AMONG U.S. TEENS teens (13-17) who say they visit or use the following apps... epone 29% 42% よ or no frequently Less 49% Almost constantly 16% 17% 53% 8% 81% f 3% 8% 14% 8% 17% Once a day 27% 12% 29% 8% 9% Source: Pew Research Center (2023) 32% day 38% Several times voronoi Where Data Tells the Story App tore GooglePlay'

Most popular streaming platforms

Cloud computing

Cloud computing is dominated by the same Big Tech companies, namely Amazon/Microsoft/Google, and in China Alibaba/Tencent.

Top influencers

Footballers and singers rule the influence industry. No actual “thinkers” anywhere in the field. Barack Obama comes closest.

Artificial intelligence

The global adaptation of artificial intelligence has been faster than that of previous tech cycles.

Book recommendations on digital capitalism

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