Gnomedex: Web 2.0 is not an echochamber

Gnomedex: Web 2.0 is not an echochamber

Summary: Mike Arrington of TechCrunch, which chronicles the parade of Web 2.0 products and services, chaired the first Gnomedex session of the day, proclaiming that Web 2.

TOPICS: Enterprise 2.0

Mike Arrington of TechCrunch, which chronicles the parade of Web 2.0 products and services, chaired the first Gnomedex session of the day, proclaiming that Web 2.0 is not just an echochamber. He gave the example of Digg, which he said is getting to the size of the New York Times. YouTube and MySpace are other examples of startups that have achieved scale and reach mainstream audiences.

Steve Rubel suggested that the upstarts can't get the ads and need to find the strong arms of a bigger company to scale revenue. Arrington countered that advertising is booming and the upstarts have a low burn rate. "YouTube iterated quickly, with tags, user ratings and innovated quickly and beat the crap out of everybody," Dave McClure said during the conversation. "You can create companies with massive impact across a broad audience with a few people....The challenge for companies getting lots of users is how to monetize beyond advertisements."

Arrington defined success as making money and makng the Interent a better place to hang Digg.

Of course, the vast majority of startups will fail to succeed, mostly because they can't make money because they don't make the Internet that much of a better place than what already exists.


Mike Arrington: Web 2.0 is spawning winning companies

Mitch Ratcliffe ranted that the failure to protect Net neutraility could hurt startups. The carriers could decide that some startups are a wasteful use of bandwidth, just because they are beginning to succeed, putting a damper on entreprenuership, he said. Kathy Gill, of the University of Washingon, said that if network neutrality were called network discriimination, more people would pay attention to the issue.
Arrington was asked if Web 2.0 is like the previous generation that went bust. "Things are incredibly different," Arrington said. "Companies are not going public. You could get bought for $25 million and aren't getting bought for $10 billion. Edgeio [Arrington was a co-founded and is now a board member] was launched for $75,000. We would have spend $10 million in 1998."

Topic: Enterprise 2.0

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  • The demographics of Digg

    By way of Anthony Mayfield's great Open (minds, finds, conversations) blog:

    "Stats about the mighty Digg's users' demographics have been published by Federated Media, as follows:

    - 94% male
    - 88% 18-39
    - 64% HHI above $75k
    - 52% IT professionals, developers or engineers
    - 26% managers or above
    - 39% publish their own blog"

    What does this tell *you* about how far Digg has penetrated into the mainstream? To me, it looks like it's still the preserve of a (admittedly sizeable) elite...
  • Beyond Ads

    So we're here in Sydney working on Zapr and we're (or at least I'm) asking myself the same question every day. "Yes, we can put ads on the side, but is that going to be enough? What else is there which will either bring in bigger bucks, keep our users happy or make us defensible?"

    You can roll out the usual suspects - subscription, revenue share, etc but they smell a lot like advertising these days.

    The real point is to look at the next steps after advertising, subscription or revenue share. Why is your advertising BETTER than adwords? Why will people subscribe no questions asked? How can revenue share actually bring more customers for both partners?

    I've got some ideas, but no answers. I'll get back to you...