Definition
Disintermediation means "cutting out the middle man". The technical term for a "middle man" is "intermediary." It's the person between the buyer and the seller.
When buying a house, a realtor is the intermediary between the seller and the buyer. When buying a plane ticket, a travel agent is the intermediary between the airline and the passenger.
Buying a ticket directly from the airline cuts the travel agent out of the process — that's disintermediation. The internet makes it easier for sellers to deal directly with buyers, leading to a reduction in the use of intermediaries - that is, "disintermediation".
Affected Industries and Occupations
- Travel agents
- Fiancial advisors
- Realtors
- Wine?
Wine Sales
According to a March 19, 2008 article on Slate, online ordering and direct shipping of wine is still restricted in many states, despite a 2005 Supreme Court decision that states could not bar shipments from out-of-state wineries if in-state wineries could ship direct.
