Page 30 - March 2018 Disruption Report

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We’re all hoping Snap would be the Facebook of video. The Facebook of video is Facebook, speci cally Instagram. Facebook can use its monopoly-like power—six of the top ten apps—to put any company in the app business out of business. The markets are failing...
...Content times distribution is the axiom we’re worried about. Too much content in the hands of a distributor that [allows them] ...to extract unfair rents—too much power around distribution. Let’s look at the ...content and distribution of the Four.
... Google has unbelievable amounts of YouTube content—1.2 trillion searches a year that form their content and they have distribution on 2 billion captive Android phones.
Apple has 34 million songs, 2.2 million apps, $1 billion committed to original content and they’re installed in distribution in 1 billion iOS devices.
Amazon is committed to $4.5 billion in original television content, second only to Net ix. They have 70% share of voice, 62% distribution through the U.S., 62% of households—no cable companies in 62% of households—and they have unlimited capital.
... I’m a full-throated capitalist, okay. So let me ask you this: If the Department of Justice had moved on Microsoft after they killed Netscape, would Google have ever made it out of the crib? Regulation creates unbelievable shareholder value when it’s done adroitly. We have a $700 billion dollar company called Google, because the Department of Justice stepped in on Microsoft and said, “Stop killing nascent companies.”
... I believe the purpose of an economy and companies is to create a middle class. Two metrics: how many girls go to college and how robust is your middle class and I’ll show you the freedoms and prosperity of any society based on those two metrics. Our middle class has gone sideways for 30 years in what is the greatest experiment in mankind called the U.S.
It won’t be easy to break these guys up. Why? Because this individual [Jeff Bezos] aggregated a great deal of power and is smarter than the rest of us. [They have] 77 full- time lobbyists in Washington, the ultimate prophylactic.
...We don’t break these guys up because they’re evil—that’s b*llsh*t. They’re no less or more evil than us. We don’t break them up because they avoid taxes. We need to hold all
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