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Bubble 2.0 ? 9 November, 2006

Posted by Adam in Business, Web marketing.

A recent post on a forum I contribute to posed the question of whether we are seeing another Internet bubble a la the late 1990s.

It’s true that a relatively low barrier to entry has seen a glut of web-based applications emerging and only a small percentage will survive the long-haul (due to a flawed business plan). But personally I don’t think this equates to a bubble in the ’90s sense. There have been some big buy-ups of late – but when people like News Corp (Rupert Murdoch), Microsoft, and Google get involved – you can bet your sweet mitzie that these purchases weren’t taken lightly. Bubble 1.0 was all about hype – there were some good ideas but the infrastructure wasn’t in place for most of them to be realised. Now though, with over 70% of the UK having taken up broadband and a massive shift in how we digest media and interact online, things have permanently changed at the cultural level and this is what the big guys are buying in to – social sites with lots of membership potential.

if anything the real casualty is old media which is gradually imploding on itself as it’s once completely valid business model based on eyeballs and adverts gets diluted amongst an exploding cosmos of new media channels. This is one of the main drivers behind the recent upsurge in website purchases of course – and I can only see that lasting for a while yet as one by one the tottering giants of yesteryear seek to bail out in a buy-up frenzy.

Like all things it will settle down, and in the meantime the smart money is into the longtail – apparently !?!




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