Friday, September 29th, 2006

Social networking sites…Bubble 2.0?


Yes and no, according to Slate. While there’s a lot of overpaying and media frenzy surrounding social networks like Myspace and Facebook, not to mention a return to brainbending math by analysts to prove that these companies ae worth soemthing, even though they don’t actually bring in much in the way of cash….there are differenes from the stock mania of the late 90’s. For one, there’s a viable advertising market to fall back on, unlike the old days. The mad rush to build infrastructure and bandwidth also works to the advantage of these new sites, keeping their costs low annd giving them the ability to feed rich content.

But my money is on the ame thing happening as Boom 1.0, on a smaller scale…a few well-run companies will stick around, and the rest will fizzle into obscurity.

Warren Frey is a journalist, freelance writer, podcaster, video producer, and all-around media consultant currently based in Vancouver, Canada. His written work has appeared in such publications as Metro Vancouver, the Westender, Mac | Life and the Japan Times.

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