A two-sided market facilitates interactions between multiple interdependent groups of customers. The value of the platform increases as more groups or as more individual members of each group are using it. The two sides usually come from disparate groups, e.g., businesses and private interest groups.
How they do it: Spotify maintains close relationships not only with it’s customers (paying and free users of the Spotify platform), but also with a set of crucial stakeholders, the rights holders of the content. It distributes approximately 70% of total revenue to rights holders, who then pay artists based on their individual agreements.
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How they do it: Airbnb offers a platform for everyone to offer their home, or experiences to guests. Airbnb’s focus lies purely on providing a reliable platform with safety mechanisms for both hosts and guests which simplifies the process of hosting and booking an accomodation.
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How they do it: JCDecaux is working with public transport authorities or government entities to furnish a city’s streets and public spaces with furnishings (e.g. public benches) in return for obtaining advertising rights at these locations. These advertising spaces are then marketed to advertisers who are willing to pay for prime locations and transit media opportunities, while the respective city benefits from advertising design innovations and free or reduced-cost public services.
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How they do it: Google’s search engine operates as a two-sided market, connecting websites and users who search for websites. Google does not provide any content but utilizes data to make sure that users with a specific search query find the website which can best answer their need / search. It also utilizes the data to allow website owners to target the user’s they want to attract on their websites.
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How they do it: YouTube’s platform features a set of key stakeholders: Their users, creators, rights holders of music videos and copyrighted content, and advertisers. Reconciliating stakeholder needs in this ecosystem or multi-sided market is a key challenge for YouTube.
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Below, the top industries for the pattern "Two-sided Market" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Below, the pattern "Two-sided Market" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
