By Alan W
When we think of platforms today, we tend to picture apps, marketplaces, and software connecting millions of users. But platforms aren’t just digital. They’ve been around for far longer, shaping industries, consumer behaviour, and even entire economies. One of the best examples? The VHS vs. Betamax war of the 1970s and 80s.
Sony’s Betamax and JVC’s VHS were two competing video cassette formats. Both allowed people to record and watch content at home - something revolutionary at the time. But what made VHS win wasn’t superior technology (Betamax actually had better video quality). VHS won because JVC built a stronger platform.
Instead of controlling the format tightly, JVC made VHS available to more manufacturers, creating a wider ecosystem of compatible players and tapes. More movie studios and rental stores backed VHS, making it the more practical choice for consumers. The platform’s value didn’t come from the hardware alone - it came from the network around it.
This same pattern repeats in different industries. Credit cards are platforms connecting consumers, merchants, and banks. Shopping malls bring together shoppers and stores under one roof. Even something as old-school as a newspaper operates as a platform, matching advertisers with readers. Platforms have always been about facilitating connections and creating value between different sides of a market.
The key takeaway? Platforms can take any shape. They don’t have to be apps or marketplaces. They can be products, systems, or even industry standards that bring different players together. If you’re building something, ask yourself: Is there a way to create a network effect? Can you make it more valuable by connecting different groups?
The next great platform might not be digital at all - it might be something completely unexpected, just like VHS was in its time.
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