Consolidation in digital media and 2.o space…
I’m starting to see a lot of consolidation in the digital media space. Some of these start-up companies like Metastories are getting bought by larger companies and smaller upstarts like YouTube would otherwise be called “web2.0″ companies if they weren’t called “digital media” companies. But, the point remains that I totally expect much, much more consolidation in the Web2.o space just as I expect to see the same in digital media throughout 2006 and into early 2007. The leading 2.0 companies, like Riya will get scooped up as will thePlatform. The remaining 2.0 companies without great business models or unique, defensible technologies will not get much more press (such as Ajax desktops like www.netvibes.com and will fade into obscurity. You better be selling something that stands out or you better have some pretty amazing technology if you don’t have a good commerce plan. These companies that sort of fall in the middle are going to have a hard time. I’m also referring to those companies who’s revenue plan is Google AdSense. AtomFilms makes sense as an ad driven business because advertisers pay more for rich media centric traffic. But, starting another MySpace with some kind of spin that’s just unique by a hair? I worry for them. Are they worrying for themselves?
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1563 Responses to “Consolidation in digital media and 2.o space…”
I agree. I think we’re seeing a lot of companies really feel that just because one company survives on AdSense and gets bought out by GYM in their market, that they can do it too. I’d love to see the revenue models for these companies become as innovative as their solutions to problems (ie- technology). Who knows the exact way all of this will play out, but we’re definitely living through an interesting time in our business.
-Jason L. Baptiste
Interesting times indeed! I wonder & worry about companies like 43things.com
I really like those guys and hope they are one of the successful ad driven companies.
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