Explaining 'enshittification': The decay of social media platforms
"Enshittification," a term coined by Canadian-British blogger and journalist Cory Doctorow in 2023, describes the decay and eventual death of social media platforms. This phenomenon, which earned the title of Word of the Year for 2023 by the American Dialect Society, is currently being observed in some online platforms that have passed their peak popularity and are now experiencing a decline in user engagement.
The three-stage process of enshittification
Doctorow explains in the Financial Times that "enshittification" occurs in three stages. First, platforms provide a positive experience for users. Over time, they begin to abuse their users to benefit their business customers. Eventually, they start abusing those business customers to claw back all the value for themselves, leading to the platform's death. Doctorow cites Facebook as a case study for this process, highlighting the thin line between users hating a service but not quitting and finally deciding to leave.
Terminal enshittification and network effects
According to Doctorow, terminal enshittification happens when users suddenly decide to leave a platform en masse. He states, "All it takes is one Cambridge Analytica scandal, one whistleblower, one livestreamed mass-shooting, and users bolt for the exits." This demonstrates how network effects can be a double-edged sword for online platforms. As more users abandon a platform, its decline accelerates, ultimately leading to its demise.
New platforms also bear the brunt of this phenomenon
In order to attract new users, Doctorow claims that new platforms offer valuable goods and services at a loss. After suppliers are locked in, the platform transfers surpluses to shareholders and, after users are locked in, it gives suppliers access to the user base at a loss. The platform loses all motivation to uphold quality if it becomes primarily shareholder-focused and vendors and consumers are locked in.
Doctorow believes these 2 principles can solve 'entiffication'
Respecting the end-to-end concept is the first step. When it comes to platforms, this means that consumers should receive what they request rather than what the platform chooses to display. The second is the freedom to leave a platform, which allows users to quickly choose another one if they're not happy with it. Interoperability is necessary for social media in order to combat network effects, which "lock in" users and impede platform competition in the market.
