Bundling, Unbundling, and Rebundlings
“(There are) only two ways to make money in business: one is to bundle; the other unbundle.”
When Marc Andreesen says something, you should probably listen.
Marc Andreessen’s a16z has $42 billion AUM, having successfully exited investments in startups like Facebook. He popularized the concept of bundling, unbundling, and rebundling which are strategies that shape how businesses offer their goods.
Let’s look at 3 examples:
Example 1: Spotify & the Music Industry
Technology enables unbundling, but often selective rebundling creates even more value. Today, music streaming app account for 84% of music industry revenues.
Example 2: Apple News & the Newspaper Industry
Rebundling isn’t always a dominant strategy. For example, many people still prefer to consume individual online news articles compared to using apps like Apple News.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.