System where a single company controls an entire ecosystem
Aclosed platform,walled garden, orclosed ecosystem[1][2] is asoftware system wherein the carrier or service provider has control overapplications,content, and/ormedia, and restricts convenient access to non-approved applicants or content. This is in contrast to anopen platform, wherein consumers generally have unrestricted access to applications and content.
For example, intelecommunications, the services and applications accessible on a cell phone on any givenwireless device were formerly tightly controlled by themobile operators. The operators limited the applications and developers that were available on users' home portals and home pages.[citation needed] Thus, a service provider might restrict user access to users whose account exhausted the pre-paid money on their account. This has long been a central issue constraining the telecommunications sector, as developers face huge hurdles in making their applications available to end-users.[citation needed]
In a more extreme example, the regulated 1970s American telephone system,Bell, owned all the hardware (including all phones) and had indirect control over the information sent through their infrastructure. It was an open government-sanctionednatural monopoly regulated by theCommunications Act of 1934. However, in the landmark caseHush-A-Phone v. United States, Bell unsuccessfully sued a company producing plastic telephone attachments.
More generally, a walled garden can refer to a closed or exclusive set of information services provided for users. Similar to a realwalled garden, a user is unable to escape this closed environment except through the designated entry/exit points or if the walls are removed.[3] Sometimes, this effect can lead to greater privacy and security features that benefit the end user, as in the case of Apple's environment, where it is more difficult for malicious software like viruses and other forms of malware to be installed and adversely affect user experience.Parts pairing can be used to prevent users from installing unsafe or untested parts.[citation needed]
A 2008Harvard Business School working paper, entitled "Opening Platforms: How, When and Why?", differentiated a platform's openness/closedness by four aspects and gave example platforms:[4]
In the 1990s,AOL developed what later was called its "walled garden"model of service.[5] The idea was to preferentially offer sponsored content to users when possible.[5] During this period,CBS paid to provide sports content,ABC paid to provide news, and1-800-Flowers paid to be the default florist for anyone seeking one.[5] This strategy became AOL's first good method for selling advertisements.[5] In its time, this method was highly profitable to AOL.[5]
Amazon'sKindle line ofeReaders.[6][7] As an October 2011Business Insider article, entitled "How Amazon Makes Money From The Kindle" observes: "Amazon's Kindle is no longer just a product: It's a whole ecosystem." Moreover, asBusiness Insider noted "The Kindle ecosystem is also Amazon's fastest-growing product and could account for more than 10% of the company's revenue next year."[8]
Barnes & Noble'sNook devices. In late December 2011, B&N began pushing the automatic,over-the-air firmware update 1.4.1 to Nook Tablets that removed users' ability to gainroot access to the device and the ability tosideload applications from sources other than the official Barnes and Noble NOOK Store (withoutmodding).[11][12]Nook HD devices were similarly "closed", until May 2013, when BN opened its ecosystem somewhat by permitting users to install the GooglePlay Store and the variousAndroid apps offered there, including those of rivals, such asAudible.com,ComiXology, Kindle,Kobo, and Google itself.[13]
Kwangmyong, thenational intranet service that operates in North Korea. It operates as a "walled garden" network, as no information from overseas is permitted to enter the network without government approval.
Video game consoles have a long history of walled gardens, with developers needing to purchase licences to develop for the platform, and, in some cases, needing editorial approval from the console manufacturer prior to publishing games.[16][17][18]
^Charles Arthur (17 April 2012). "Battle for the Internet (Part III of series): Walled gardens look rosy for Facebook, Apple – and would-be censors".The Guardian.
^Robert A. Burgelman; Carrie C. Oliver (1 August 1997)."Electronic Arts in 1995". Stanford Graduate School of Business. pp. 16 pages. SM24-PDF-ENG. Retrieved29 November 2013.
