Firstly, every market starts out in an unorganized way, with only small players serving it, like in here. As markets expand, they get organized through consolidation and standardization. This process eventually results in the emergence of a handful of “full-line generalists” surrounded by a number of “product specialists” and “market specialists.” Contrary to the prevailing wisdom that they only occur when an industry matures or shrinks, such shakeouts often take place during market expansion.
Secondly, successful product or market specialists typically face only one direct competitor in their chosen specialty, but in case of AudioJungle it was broken with massive oversaturation of the market with a bunch of low-quality and self-copied product, so from the buyers point of view this site getting into flea market, with a lot of useless items, so no one can find pearl in this swamp.
Thirdly, if you as an author face excessive competition in your niche, you can move up to become supernicher.
Forthly, successful market growth (finding new markets for existing products) requires product strength, and successful product growth (developing new products for existing markets) requires market strength.
So in conclusion, my damn financial degree gave me the opportunity to look on this situation from the commercial angle, and to let you know that Envato staff making right steps for their growth as a company, providing\offering customers with more quality then a quantity service\product.
P.S. You know where the door is… 
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