-
Strategies for a discontinuous future.












Monday, February 09, 2004
 


Bubblets

The NYT asks the monetization question of social networking software, but misses half the point - my guess is that a fair number of these players are looking to be acquired for their user bases, not the amount of cashflow they can generate in susbcription fees. That's because a captive user base can be massively leveraged for cashflow by someone who can feed it, for example, an advertising system that works.

Of course, that also means that there will be a strong winner-take-all dynamic in this market - and the losers will have burned through a fair amount of cash. Will they be able to achieve other means of monetization? Only time will tell - and my guess is no, because as Google's AdSense gains more and more competition, the rents that can be captured will fall in value.

-- umair // 8:42 AM //


search



new


input

due diligence
ventureblog
a vc
techblurbs
tj's weblog
venture chronicles
terranova
the big picture
gigaom
venchar
bill burnham
babak nivi
n-c thoughts
paidcontent
techdirt
slashdot
london gsb
mefi
boingboing
blort
hardwax
betalounge

ing
morgan
chicago fed
dallas fed
ny fed
imf
world bank
nouriel roubini

portfolio
contact

mail.
uhaque (dot) mba2003 (at) london (dot) edu

skype.
umair.haque

atom feed

technorati profile

blog archives