Fri 22 Sep 2006
Every week, a new announcement in the internet and digital media space …
- Google signs a $900m deal with News Corp to provide search and advertising for MySpace.com and other Fox Interactive properties
- Apple announces an initiative to provide movie downloads from the iTunes store
- Yahoo announces an online video programming venture with Current TV
- Yahoo is reportedly in “serious talks” to acquire social networking site Facebook for $1B
So, is this deja vu all over again? Are we experiencing the frantic upside of a second internet bubble? Will it burst too?
While there are perhaps similarities to the Great Internet Bubble (note I don’t say “First Great …”) in the fervor with which web 2.0 applications seem to be catching the attention of the business community, I think there is one very significant difference.
And that is the fact that there is *real* money behind these deals - not the worthless-stock-for-worthless-stock transactions of the late ’90s. But real, honest-to-God money, coming from very profitable media companies.
Will there be a shakeout once the fervor settles down? Undoubtedly. Will there be a wholesale bubble burst? I don’t think so.
The internet is becoming the new entertainment medium - pulling viewers and advertising dollars from traditional broadcast and cable TV networks. What we’re seeing is a transition in consumer behavior from passive viewer to active participant - in an effort to take back control of how we choose to entertain ourselves (not “be entertained”).
So, rather than asking when the internet bubble 2.0 will burst, maybe we should all be humming “Internet killed the ‘cast TV star” [1]
[1] shameful, unabashed reference to the Buggles’ “Video Killed the Radio Star”
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November 27th, 2006 at 2:56 pm
GridGuy,
I agree with your assessment that there is real money being invested in Web 2.0 development, not the funny money of the dot.com era and I believe this will show a true ROI this time.
I think that this is more a reflection of society and how people will interact in the future.
Just think when I was growing up, I didn’t have MySpace or IM or Blogs or on-demand entertainment content. I hung out on the corner and told lies to my friends. And the neighborhood and the value’s and attitudes of your peers shaped your perspective.
And then came the explosion of the Web 10+ years ago. And all of this content was available (and we both know what was the driving content in the early years). But as people started searching for new information the initial design of the Web did not allow you to interact with the author or publisher effectively, therefore it was more of a one sided conversation. Great for looking up what you believed was factual information.
With the advent of Web 2.0 design that is fundamentally changing how people will use the Web. The days of hanging on the street corner are gone and now people will exchange ideas and opinions with people from all over the world. This will create even more of a melting pot than we have seen to date, with endless possibilities.
It will be interesting to watch the evolution of this newer form of communications.
Funny reminds me of the old days of Electronic Bulletin Boards and Usenet Newsgroups, and look at the companies that came out of that era.