Part 3/9:
Network effects play a crucial role in the success of platforms like TikTok, Facebook, and Instagram. The more users a platform has, the more valuable it becomes for all involved. This creates a self-sustaining flywheel of content generation and engagement—a cycle that enhances the platform's appeal as it grows. However, building valuable networks is not easy due to the 'cold start problem'; new platforms often struggle to get initial users.