May 14, 2021
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Are The Most Successful Media Companies Just Good at Arbitrage?

In financial markets, arbitrage is when a trader is able to buy and sell a specific asset on two different markets where there’s a price difference. When crypto was more immature, for example, arbitrage would occur where the price of bitcoin on a South Korean exchange was far higher than it was on a U.S. exchange. For traders with access to both, this presented a unique opportunity to buy on a U.S. exchange and then sell on the South Korean exchanges.

In media, there is a similar type of arbitrage. Surprisingly, though, it was only very recently that I’ve started to notice more companies start to take advantage of this. If we think about the publishers that get the most discussion—and the ones that are most successful—they tend to share the same thing: a deep understanding of that arbitrage opportunity.

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