Platform Enshittification
Enshittification describes a pattern of platform decay where digital services transition from user-centric value creation to aggressive value extraction. Coined by author and activist Cory Doctorow, the term outlines a three-stage lifecycle inherent to many venture-backed digital monopolies.
The Lifecycle of Decay
The process follows a predictable trajectory driven by the need to satisfy different stakeholders at different times:
- Surplus to Users: Initially, a platform subsidizes its services to attract a massive user base. This often involves offering high-quality features for free or below cost. The goal is to establish Network Effects and make the platform indispensable.
- Surplus to Business Customers: Once users are “locked in” by high Switching Costs, the platform shifts its focus to business customers (e.g., advertisers, third-party sellers, or creators). The platform provides these businesses with access to the user base on favorable terms to ensure they become dependent on the ecosystem.
- Surplus to Shareholders: In the final stage, the platform harvests the surplus from both users and business customers to maximize profits for itself and its shareholders. This results in a “shitty” experience for everyone else: users see more ads and less relevant content, while businesses face higher fees and lower reach.
Economic Mechanisms
Enshittification relies on the erosion of Adversarial Interoperability—the ability for third parties to create tools that work with a platform without the platform owner’s permission. When a platform can prevent users from leaving or using alternative interfaces, it gains the leverage necessary to degrade its own service without losing its audience immediately.
The logic of the “Pivot to Video” on social media or the degradation of search engine results in favor of sponsored content are prime examples of this phenomenon in practice.
I wonder…
- Is enshittification an inevitable end-state for all venture-funded platforms, or can different ownership models (like cooperatives) prevent it?
- How does the rise of the Fediverse and decentralized protocols offer a technical defense against this cycle?
- At what point do Switching Costs become lower than the “pain” of a degraded service, leading to total platform collapse?
- Could “anti-enshittification” regulations focused on interoperability be more effective than traditional antitrust laws?