In "Trust Me, I'm Lying: Confessions of a Media Manipulator," Ryan Holiday discusses how the competitive nature of online media leads to increasingly sensational content. The phrase "The reason the knives are so sharp online is because the pie is so small" highlights the intense rivalry among media outlets for limited audience attention. This scarcity drives content creators to produce more provocative and extreme stories to stand out.

Holiday emphasizes that this environment rewards unethical practices, as sensationalism often trumps truth in the quest for clicks and views. As a result, media manipulation becomes a common strategy, reflecting a culture where the quality of information is compromised in favor of attraction and engagement. The quote encapsulates the challenges of the online information landscape, where the battle for the audience can distort reality.