The Three Stages of Decay
Doctorow describes the process as a precise sequence:
1. Surplus to Users
The platform is good to users to drive adoption. It is subsidized by investors (operating at a loss). There are no ads, the feed is chronological, and reach is organic. Example: Early Instagram, early Uber.
2. Surplus to Business Customers
Once users are locked in, the platform pivots to serving advertisers or suppliers. It degrades the user experience to capture revenue. Example: Amazon prioritizing paid placement over relevant search results; Facebook forcing brands to pay to reach the followers they already acquired.
3. Surplus to Shareholders
Finally, the platform claws back value from everyone—users, creators, and advertisers—to show growth to Wall Street. The service becomes barely usable, kept alive only by network effects and lock-in. Example: Twitter throttling API access; Netflix cracking down on sharing.
Mechanism: The Bait and Switch
Enshittification relies on Rented Land. Users build audiences or habits on a platform assuming the "rules" of Stage 1 will last forever. Once they are trapped (high switching costs), the platform changes the rules.
Field Notes
Doctorow's Law: "Platforms are not evil; they are just machines for turning capital into more capital. Enshittification is what happens when that machine runs out of new users to acquire and starts cannibalizing its own ecosystem."
The Defense: The only defense against Enshittification is sovereignty. If you can leave (data portability, interoperability), the platform cannot abuse you without losing you.