How they do it: By making their search engine universal and allow customers to look for anything in the internet, Google has become the leading search engine provider. It’s value proposition is to give customers exactly the search results they are looking for, no matter how small the niche. This leading market position supports itself as with a large enough customer group, the probability that someone has searched for a certain thing before increases.
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How they do it: Spotify features a library of tens of millions of songs, with 20,000 songs added daily. The library features high-profile acts with hundred of millions of ”listens” as well as less-know musicians, whose songs attract less than a couple of thousand ”listens”.
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How they do it: Amazon Kindle has a library of millions of digital books. A new Kindle e-book is published every five minutes. Amazon Kindle is offering bestsellers and a vast majority of niche publications on its platform while ensuring that they are competitively priced. Hence it allows them to adress a big audience of potential customers through its wide offering and good prices, rather than few high margin products. Individual margins might be low but the sheer majority of transactions add up to a significant revenue.
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How they do it: Apple offers its customers a wide variety of music in its iTunes store. Revenue with individual songs might be small but through the sheer mass of songs users download it generates a substantial amount of revenue.
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