By Richard Martin, President, Alcera Consulting Inc.
Economic disintermediation represents a seismic shift in how consumers and producers interact, with information disintermediation already fully underway and creating profound disruptions. By removing traditional middlemen, disintermediation enables direct exchange across various fields, fostering closer connections, lowering costs, and democratizing access. Although this trend does not fully eliminate intermediaries, the role of “neutral” platforms has emerged, reshaping traditional gatekeeping. Platforms such as YouTube, Substack, Medium, and X.com have transformed interactions in ways that, at least theoretically, prioritize open exchange over control.
This article explores both the current disruptive impacts of disintermediation in the information economy and the potential future of this shift, particularly as powerful forces like Bitcoin and artificial intelligence/machine learning (AI/ML) come into play. Bitcoin, with its decentralized structure and a network resilient to interference and attacks, holds the potential to redefine the financial system by enabling secure, global value transfer. AI and machine learning, meanwhile, could amplify possibilities for creators and consumers alike, while posing new challenges around control and autonomy.
Naturally, these trends will likely lead to unexpected outcomes as incumbents and powerful stakeholders respond in a dialectical push-and-pull of competition, cooperation, and conflict. No incumbent accepts change without resistance, and the addition of Bitcoin and AI/ML could further amplify the transformative landscape of disintermediation.
What Is a Platform?
Platforms serve as online ecosystems where buyers and sellers, or content creators and consumers, can meet without traditional intermediation. Unlike conventional marketplaces requiring significant up-front investment or complex onboarding, platforms allow nearly anyone to participate with minimal entry barriers—often just an account, email, and login credentials. These platforms stand as “neutral” aggregators of audience and attention, generating revenue by selling user attention to advertisers. This model hinges on algorithmic targeting, which efficiently connects users to relevant content while maximizing advertising value through highly segmented user data.
The Dynamics of Modern Platforms: Audience as a Tradeable Asset
While platforms reduce direct access barriers, they rely on the same principle as mass media: capturing attention. Audience attention in social media has become a tradeable asset, transforming users into valuable segments for advertisers. This shift is subtle but powerful; audiences, while enjoying “free” access, pay with their time and attention. Platforms optimize engagement by directing content aligned with user preferences. However, disintermediation has pushed this model further by enabling creators to bypass traditional advertising models. Through direct payments, subscriptions, and patronage (e.g., Patreon), users now support creators directly. This phenomenon has given rise to a “creator economy,” with independent musicians, podcasters, journalists, writers, and artists building income streams directly from their fans, sidestepping traditional intermediaries.
Shifting Policies and the Controversy of Content Moderation
Recent years have seen platforms face intense scrutiny over censorship and content moderation. Platforms like X.com (formerly Twitter) and YouTube previously faced criticism for alleged censorship, particularly around high-stakes events like the 2020 U.S. election and the COVID-19 pandemic. Reports such as the Twitter Files revealed instances of content suppression influenced by government agencies and corporate interests. However, with Elon Musk’s acquisition and rebranding of Twitter as X.com, the platform appears to be moving toward a more “level playing field.” YouTube has also reduced some content restrictions, adopting a more open approach. This shift aligns with the broader trend of informational disintermediation, creating conditions where creators engage audiences more directly, with fewer filters on the nature of content they share.
Case Studies in the Creator Economy: Music and Media
In the music industry, disintermediation has been equally transformative. Artists like Billie Eilish and her brother Finneas bypassed traditional studios, producing global hits from their home studio. This democratization allows musicians to reach audiences independently, often amassing massive fan bases on social media before any corporate backing. Musicians and performers now generate income through streaming, merchandise sales, direct interactions, and exclusive content. The result is a dynamic, artist-driven industry where audiences support artists directly, reshaping how music is created and consumed. Blues rock guitarist Joe Bonamassa exemplifies this shift as well. With a two-person team, Bonamassa has created a vertically integrated business that spans music production, performance, merchandising, and distribution—a modern case of disintermediation in action.
Cryptocurrency as Financial Disintermediation
Perhaps the most groundbreaking example of disintermediation lies in cryptocurrency. Bitcoin, the first and most widely known cryptocurrency, is now seen by many as a disruptive asset class. However, its true potential goes beyond investment; it could transform global financial systems by offering a decentralized, high-powered currency for international transactions. Today’s financial system relies on the U.S. dollar standard and services like SWIFT for international transactions, which can be slow, costly, and heavily dependent on intermediaries. Immigrants sending remittances, for example, often face high fees and security concerns with services like Western Union, and transaction settlements can take several days or even weeks.
Bitcoin provides a solution by enabling direct, near-instantaneous transfers between any two points worldwide. For a small-scale example, companies like Strike use Bitcoin to facilitate low-cost remittance services. For instance, a Salvadoran immigrant in the U.S. can send $50 to a family member in San Salvador via Strike, with funds transmitted over the Bitcoin network and converted into the local currency for a fraction of the fees typically incurred. Scaling up this process by several orders of magnitude could revolutionize the international financial landscape, much like Google transformed the advertising industry, as intermediaries are bypassed in favour of a more efficient, transparent, and accessible global financial system.
AI and ML: Disintermediating the Creative, Medical, and Business Worlds
The potential disintermediation effects of artificial intelligence and machine learning are enormous. Just in the realm of artistic creation, AI and ML already allow artists to produce and distribute works that once required heavy investments in infrastructure, capital goods, and specialized expertise. With advanced tools, creators can produce high-quality work on par with traditional production studios. This democratization opens doors for more diverse voices and styles to flourish, without the significant gatekeeping of traditional industries.
Another potential area of disintermediation and increased transparency is in medicine, where3 AI/ML is already making substantial impacts. For example, Elon Musk’s xAI encourages users to upload medical imagery for its grok chatbot to interpret, testing its capacity to analyze complex visual data. Various AI/ML systems have shown potential to outperform humans in identifying medical issues in imagery. While these tools may never completely replace human judgment, they act as powerful amplifiers of human capability, much like how mechanical diggers and cranes enabled new possibilities in construction. With AI as an aid, medical professionals can interpret data more efficiently and accurately, expanding diagnostic access and potentially transforming global healthcare practices. Or perhaps, consumers could do this themselves.
In business, small enterprises are already leveraging AI-driven inputs to target advertising with greater precision through platforms like Google. Apple has demonstrated the power of the iPhone by creating entire promotional videos using only the iPhone for recording, with editing and finalization handled on consumer-level platforms. These capabilities enhance creativity and productivity, reducing the need for costly capital goods and specialized human resources. The result is a significant lowering of production barriers, fostering a more dynamic and innovative business landscape.
The Future of Disintermediation: Toward a Direct Exchange Ecosystem
The potential impact of disintermediation is profound. With platforms enabling direct exchanges, cryptocurrencies potentially reducing dependency on traditional finance, and AI/ML further enhancing individual productivity, we are moving toward an era of unmediated value exchange. Platforms aggregate audiences, but increasingly, control and rewards lie with creators, producers, and consumers. This emerging economic landscape not only lowers costs and barriers but also enables more authentic, transparent exchanges.
As we witness the continued evolution of disintermediation, its full implications are yet to be realized. Just as Google restructured advertising, these technologies may fundamentally reshape media, finance, and information ecosystems. Ultimately, disintermediation empowers individuals, offering a democratized future where traditional barriers dissolve, creating space for unprecedented innovation and engagement.
However, the complete ramifications of these trends will unfold only through the dialectical interplay of new entrants, traditional stakeholders, and inevitable state intervention and regulation. This dynamic, as each actor pushes, counters, or adapts to shifting norms, will determine the ultimate benefits, costs, and societal impacts. While disintermediation promises expanded autonomy and access, the balance of power between free-market forces and regulatory oversight will shape how its positive and negative outcomes materialize.
About the Author
Richard Martin is the founder and president of Alcera Consulting Inc., a strategic advisory firm specializing in exploiting change (www.exploitingchange.com). Richard’s mission is to empower top-level leaders to exercise strategic foresight, navigate uncertainty, drive transformative change, and build individual and organizational resilience, ensuring market dominance and excellence in public governance. He is the author of Brilliant Manoeuvres: How to Use Military Wisdom to Win Business Battles. He is also the developer of Strategic Epistemology, a groundbreaking theory that focuses on winning the battle for minds in a world of conflict by countering opposing worldviews and ideologies through strategic analysis and action.
© 2024 Richard Martin
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