The Addiction Economy

🌈 Abstract

The article discusses the increasing addictiveness of various consumer products and digital services, such as TikTok, diet apps, investing platforms, and sports betting platforms. It argues that as digital competition intensifies and technology inputs become commoditized, addiction has become a key differentiator and competitive advantage for businesses. The article explores several examples across different industries to illustrate this trend and its implications for both businesses and consumers.

🙋 Q&A

[01] The Addictiveness of TikTok

1. What was the author's personal experience with TikTok? The author describes how he downloaded TikTok one night and ended up scrolling for 6.5 hours without realizing the passage of time. He found the app to be extremely addictive, describing it as "TV on crack."

2. What data is provided about TikTok usage? The average TikTok user is on the app for 95 minutes per day and opens it 8 times per day. TikTok is the third most used social app in America, with over 1 billion monthly active users. This amounts to 84,608 man-years of time collectively spent on the app per day.

[02] The Acceleration of Addictiveness

1. What did Paul Graham propose in his 2010 essay? In his essay "The Acceleration of Addictiveness," Paul Graham proposed that as technological progress continues, products across categories will become more addictive over time.

2. How has this trend accelerated in the last decade? The author argues that the process of optimization and making products more addictive has accelerated over the last decade, with TikTok being an exemplar of this ultra-optimized consumer addiction.

[03] Addiction as a Competitive Advantage

1. How does addiction provide a competitive advantage for businesses? The author explains that in a digital world with intense competition and commoditized technology inputs, services that can grab and hold consumers' attention for longer will be rewarded. Addiction becomes a key differentiator and competitive advantage for businesses.

2. What examples are provided of this trend across different industries? The article provides examples of addiction-driven business models in industries like sports betting, dieting/weight loss apps, investing/trading platforms, food delivery, and even B2B software.

[04] Reasons for the Acceleration of Addictiveness

1. What factors have contributed to the increasing addictiveness of digital products? The author cites the commoditization of digital inputs and the sociological conditioning of entrepreneurs as key factors that have led to the acceleration of addictiveness in digital products.

2. How does the author view the inevitability of this trend? The author suggests that while this trend may feel concerning, fighting against the broader direction of technological change is likely futile. Instead, the focus should be on making things better within the new reality.

[05] Responding to Addictive Technology

1. What is the author's advice for consumers regarding addictive technology? The author acknowledges that while most people would prefer not to be addicted to technology, individual restraint and choice are the primary ways to respond to this trend, as the system rewards companies that keep users highly engaged.

2. What is the author's more optimistic perspective on this trend? The author suggests that as technology becomes more addictive, the few remaining "contrarians" who live differently may be more richly rewarded, providing an optimistic interpretation of this trend.