Growth at All Costs is Killing the Internet - Ed Zitron
The Deteriorating Online Experience
Many internet users have observed a decline in their overall online experience recently.
Websites are increasingly burdened with intrusive elements like automatically playing advertisements, unwanted pop-up windows, and numerous tracking scripts.
Despite advancements in generative AI, customer service chatbots often fail to provide helpful assistance.
The Rise of Engagement-Focused Design
Social media platforms prioritize content designed to provoke strong reactions, encouraging prolonged scrolling and user engagement.
Dating applications frequently restrict access to desirable profiles behind paywalls.
Even everyday devices, such as printers, now often require ongoing monthly subscriptions for full functionality.
Furthermore, canceling these subscriptions can be surprisingly difficult, rarely achievable with just a few clicks.
The "Rot Economy" and its Origins
This trend represents a shift away from a user-centric internet towards one focused on maximizing engagement, advertising revenue, and subscription numbers.
Ed Zitron, CEO of EZPR and host of the Better Offline podcast, terms this phenomenon the “rot economy.”
He attributes it to a technology sector overly focused on growth, viewing customers as obstacles to be managed rather than valued participants in a mutually beneficial exchange.
Opportunities for New Entrants
In a discussion on the Equity podcast, I spoke with Zitron, who is currently writing a book titled “Why Everything Stopped Working,” about how the stagnation of established companies creates openings for startups to disrupt various industries.
Zitron was direct in his assessment of Big Tech’s decline, criticizing the emphasis on short-term quarterly growth that results in inferior products.
He described these products as “ugly, expensive, and ineffective,” and noted that users generally dislike interacting with them.
Challenging the Status Quo
Zitron contends that many dominant tech companies have become “fat and lazy” and “overconfident.”
Their business strategies rely on the assumption that users will simply remain with them due to inertia.
“You can beat that,” Zitron asserted, stating that any unsatisfactory online experience is vulnerable to disruption.
Essentially, anything on the web that currently provides a poor user experience is a potential target for innovation.
Social Media
According to Zitron, a significant number of sectors are poised for innovative change. A particularly prominent example is social media, where the current experience on platforms like Instagram necessitates overcoming obstacles imposed by Meta to access desired content. He points out that Meta actively directs user attention towards what it prioritizes.
Zitron further observes that Facebook presents an even more challenging user experience. This, coupled with the controversies surrounding figures like Elon Musk and Mark Zuckerberg, is driving users away from X and Meta’s platforms.
Consequently, there's a growing migration towards platforms built on the decentralized web. This system utilizes independently operated, privately owned servers that collaborate to deliver secure and private access to information and services.
Emerging Alternatives
Bluesky and Mastodon have gained traction as viable alternatives to X. Furthermore, a wave of startups are actively competing to challenge the dominance of Instagram and TikTok.
Within the decentralized realm, Bluesky is preparing to launch Flashes, a dedicated photo-sharing application. Pixelfed is also experiencing user growth.
Many individuals who previously used TikTok have been downloading RedNote, particularly given the uncertain future of the ByteDance-owned application.
Enterprise and productivity software
Zitron identifies significant potential within the realm of enterprise and productivity software, specifically regarding offerings like Microsoft 365 that are not considered exceptional.
Regarding Microsoft as a whole, Zitron stated, “Their products are not of high quality. This has been the case for a considerable period.” He qualified this statement by noting that the gaming division might be an exception, expressing his appreciation for the Xbox platform.
However, he also added a critical observation: “They frequently implement layoffs, and I anticipate further reductions in staff.”
Zitron’s critique extends beyond Microsoft. He contends that numerous formerly highly-regarded Silicon Valley companies – including Microsoft, Salesforce, Dropbox, and Zoom – have deviated from their original strengths following their initial public offerings.
The necessity to demonstrate consistent quarterly growth to satisfy investors, he argues, inevitably leads companies to prioritize immediate profits over sustained product excellence.
As an illustration of this trend, Zitron highlighted Google Docs. He noted its initial appeal stemmed from its simplicity and user-friendliness.
“Google Docs was initially praised for its clean and intuitive design,” Zitron explained. “However, it now prompts me to utilize AI features, specifically Gemini.”
Zitron characterized Adobe as currently “the most vulnerable company in the technology sector,” describing them as “desperate” and advocating for a viable alternative. Potential competitors include Figma, Affinity, and Blender.
He generally believes that consumers will be instrumental in driving change as they recognize the self-serving “lack of effort” exhibited by established companies.
“I anticipate a noticeable shift in consumer behavior within the next year, with both businesses and individuals moving away from these subpar companies,” Zitron asserted. “By ‘subpar companies,’ I largely refer to the majority of Big Tech firms.”
The Current State of Search
The dominance of Google in the search engine market is increasingly being challenged by a growing number of emerging companies, a development that, according to Zitron, is entirely justified.
Historically, Google Search excelled at delivering the most relevant web links in response to user queries. However, its current results often prioritize paid advertisements over genuinely helpful content.
A Shift in Search Quality
Zitron expressed a critical view, stating that Google search has diminished in quality. He also pointed out that alternative search engines like DuckDuckGo are demonstrating financial viability and could potentially gain prominence should legal rulings in the ongoing antitrust trial compel Google to share its data resources with rivals.
Emerging Search Alternatives
Beyond DuckDuckGo, a diverse range of search competitors are vying for user attention.
- Perplexity distinguishes itself through a chatbot-driven search experience, providing direct answers to questions alongside citations.
- Diem is a search engine specifically designed for women, employing AI to combat data biases prevalent in traditionally male-centric online environments.
- In the realm of decentralized search, Marginalia Search prioritizes lesser-known, non-commercial websites over those heavily optimized for search engine rankings.
- OpenSearch operates as an independent, crawler-based search engine.
Privacy-Focused and Premium Options
For users seeking enhanced privacy alongside improved search results, Kagi presents a compelling option. This paid search engine emphasizes high-quality results and operates without advertisements.
Brave Search offers a completely independent search index, eliminating reliance on Google or Bing. It is coupled with the Brave browser, which inherently blocks advertisements and tracking mechanisms.
Zitron posits that the realm of email presents a viable avenue for startup innovation. Despite its prevalence as a primary communication method, the majority of inboxes suffer from disorganization and spam. This is often attributed to the cumbersome user experiences offered by established providers such as Outlook, Gmail, and Yahoo.
Similar challenges extend to enterprise-level email solutions, including Microsoft Exchange and Google Workspace. Opportunities for disruption are therefore abundant, according to Zitron.
Current Landscape
Zitron observes that while services like Proton, offering end-to-end encrypted email, demonstrate potential, their usability requires improvement. However, Proton is not alone in this space.
Competing services, such as Tutanota and Skiff, also aim to provide secure email communication. Simultaneously, alternatives like Superhuman, Hey, and Shortwave are actively focused on reimagining the overall email user experience.
These newer platforms are attempting to address the shortcomings of traditional email clients by prioritizing streamlined interfaces and enhanced functionality.
The existing market demonstrates a clear demand for a more intuitive and efficient email solution, creating a fertile ground for new entrants.
Creating Superior Products: A Core Principle
Disruptive potential is identified by Zitron across numerous sectors, extending beyond the digital realm. A specific area highlighted is the possibility for new companies to challenge Amazon's dominance in shipping and logistics.
This challenge could be met by forming an alliance of smaller enterprises – essentially, a “Shopify” equivalent focused specifically on delivery services.
Zitron advocates for innovative approaches to established industries. He points to the need for new real estate technologies to supersede current market leaders like Zillow, and a streamlined alternative to Canva, avoiding unnecessary complexity from AI integrations.
A fundamental critique leveled at the current venture capital landscape is its overemphasis on rapid growth, irrespective of underlying sustainability.
This focus, according to Zitron, has resulted in a cohort of startups that secured excessive funding but now face limited viable pathways forward.
Given that Zitron’s firm specializes in public relations for startups, it’s logical that he would emphasize the deficiencies of larger technology corporations.
However, the conversation proved to be highly motivational.
Individuals seeking enhanced user experiences, or those developing solutions to compete with established giants, will find the discussion particularly valuable. The full conversation can be accessed here.
