Another insightful post from Nicholas Carr; read the full post for analysis of the consequences, e.g., for newspaper publishers
For much of the first decade of the Web's existence, we were told that the Web, by efficiently connecting buyer and seller, or provider and user, would destroy middlemen. Middlemen were friction, and the Web was a friction-removing machine.
We were misinformed. The Web didn't kill mediators. It made them stronger. The way a company makes big money on the Web is by skimming little bits of money off a huge number of transactions, with each click counting as a transaction. (Think trillions of transactions.) The reality of the web is hypermediation, and Google, with its search and search-ad monopolies, is the king of the hypermediators.