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: In the Amazon Kindle store, publishers, authors and other rights-owners can sell their content to Kindle users. Hence, Amazon is just providing the marketplace but does not have to provide the content itself.
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How they do it: Salesforce offers different apps on its AppExchange platform. Customers of Salesforce may purchase access to apps published by third-parties. Thus, it can leverage a two-sided market, connecting its paying customers with paying third-party AppEchange publishers.
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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: In the Amazon online store’s ”marketplace” section, retailers independent from Amazon can sell their products to customers.
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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.
