The concept of richness and reach as illustrated by Evans and Wurster in "Blown to Bits" (1999) has been a major contribution to our understanding of Internet business strategy.

This is the argument in a nutshell:

The economics of information and the economics of physical things differ fundamentally from each other. When a tangible good is sold, the seller does not own it anymore. When an idea, software or a research paper is sold, the seller still possesses it and could possibly sell it once more.

Information can be replicated without any noteworthy cost and can be distributed over the Internet at a very low cost. Other than information, tangible goods are location-based and many times wear out.

In the traditional economics of things products are subject to a universal law