There’s a lot of misinformation about open vs closed systems. Closed systems can internalize network effects so that flavor has a durable advantage over the long run. Here’s a great example of how, closed platforms can internalize network effects to their advantage. The trick is the get the flywheel going:
Facebook Inc. is offering to let publishers keep all the revenue from certain advertisements, in a bid to persuade them to distribute content through the social network, according to people familiar with the matter.