Episode 189 — Bundles - Exponent Recap

Podcast: Exponent

Published: 2020-10-06

Duration: 49 min

Summary

In this episode, Ben and James discuss the evolution of bundles and unbundles in media and technology, exploring how historical bundles have transformed as new technological landscapes emerge. They emphasize that rebundling occurs along different vectors than prior bundles due to shifts in consumer behavior and technology.

What Happened

The episode kicks off with Ben and James acknowledging their delay in recording, humorously attributing it to microphone issues and timing conflicts. They dive into an article Ben wrote in September about 'bundles,' reflecting on the concept of unbundling and rebundling in the context of media and apps. They note that while previous discussions focused on traditional media like TV, this episode expands the conversation to include modern digital experiences such as apps and gaming.

Ben explains that unbundling leads to a reorganization of content, often not returning to the same structures as before. He makes a comparison between the unbundling of newspapers and television, which were built on traditional distribution methods, and how the emergence of new platforms like Facebook has changed how content is bundled. The conversation underscores the idea that rebundling happens on different axes, influenced by contemporary consumer expectations and technological advancements.

Key Insights

Key Questions Answered

What caused the unbundling of newspapers?

Ben explains that the unbundling of newspapers was largely due to the shift in distribution methods. Once the traditional distribution systems like printing presses and delivery trucks became less relevant, the newspaper bundle started to fall apart. People no longer sought a general news site for all types of content; instead, they gravitated towards specialized sites that catered to specific interests, leading to a significant atomization of content and advertising.

How did Facebook change the advertising landscape?

In the discussion, James points out that Facebook's approach to bundling is fundamentally different from that of traditional newspapers. Rather than focusing on broad content, Facebook's bundle revolves around its user base and targeted advertising. By leveraging data on user behavior, Facebook created a platform where content became commoditized and modularized, allowing advertisers to reach highly specific audiences.

What parallels exist between the unbundling of media and modern apps?

Ben draws parallels between the historical unbundling of traditional media and the current landscape of apps and digital services. He argues that while traditional bundles like newspapers were based on a one-size-fits-all distribution model, modern bundles are evolving to reflect new technological capabilities and consumer desires, such as personalized app experiences that cater to individual preferences.

How do bundles evolve in the tech landscape?

The hosts discuss that the evolution of bundles in the tech landscape is driven by the intersection of consumer demand and technological innovation. New companies are able to create bundles that didn’t exist two decades ago, reshaping consumer experiences and expectations. This evolution indicates that future bundles will likely differ significantly from their predecessors, based on the different conditions and needs of users.

What is the significance of the term 'rebundling'?

James emphasizes that rebundling is not merely a return to previous structures but rather a reconfiguration based on the lessons learned from unbundling. He notes that the reasons for rebundling reflect different market dynamics and consumer expectations compared to those that existed when original bundles were formed. This process highlights the adaptability of businesses in response to changing conditions in the marketplace.