Comments on: The Web 2.0 economy hangs in limbo

Earnings are healthy, and new digital-ad networks are debuting seemingly by the day, but no one can deny that these economic times demand caution.

[scdecade]

The gov't has gone feral

The prevailing policies tend towards violence. Uncertainty combined with violence combined with serving a gov't intent on its own sensory satiation above all else adds up to stagnation. Who would release their creative energy into this hornets nest? Some people will do so regardless but the best people will not. Wisdom in policy has vanished. Something has to give first. That's how I read the Karma.

I bet this reads like a crazy person wrote it. Maybe they did.

[andrew.mager]

CNET, why do you make me put subject lines in my comments. That is so weird

I see a "Web 2 bust" coming soon. VCs are gonna get pickier with a recession.

What's wrong with lightsabers? :)

[bmirabito]

Great article!

It does feel a lot like the irrational exhuberance of the 90's. There is so much hype around Web 2.0, but no clear ROI. At a recent Shop.org Marketing Workshop, one of the speakers said, "You can't think of it terms of ROI."

I wrote a recent blog post myself about the futile race for the "next new thing," and how entire industries can get caught up.

Seems to me we all need to get back to basics, particularly in light of the economy, as your post points out.

[Frymaster]

CNET - Render A Tags

Unrendered code is just embarrassing.

[Frymaster]

What He Said About Subject Lines!

Ah, lightsabers and t-shirts, reminds me of the late 90s. What was the term...? "Burn Rate" Those who do not learn from history... And so, Bubble 2.0. But thanks for the tchochkes

[azareus]

eyes can deceive you

Luke: With the blast shield down, I can't even see. how am I supposed to fight?
Obi-Wan: Your eyes can deceive you. Don't trust them. Stretch out with your feelings.
Han: Hokey Religions and ancient weapons are no match for a good cluster at your side, kid.

[Chaz1001]

Reminder Box

I'd like to see the developers come up with a membership logo for all sights accepting money that reminds you that your subscription is still in effect and you don't accidently resubscribe on your credit card ending up in being charged twice.
passwords and status are my major problems using the internet. Like a secure sight logo, a membership confirmed logo would go a long way.

[desmondhaynes]

don't put chimps and monkeys in same bucket

you talk of web 2.0 in the same breath - there are successes around. while the drunken bash made good reading, i am sure not all companies are like that.

many will fall out - sure - but not all.
and you know which ones are hot, dont you?
-D
http://techwatch.reviewk.com/2008/04/do-you-twitter-hell-no/

[pieterjansegers]

I'm afraid too...

I'm afraid that we'll experience a new net bubble: microblogging.

Although Twitter, Jaiku, Pownce and Tumblr will survive in my opinion, I'm doubting many others will unless the opt for a specialization in public (an other language, an other functionality, ...).

"Creating just another microblog" isn't good enough anymore to conquer an audience ...

Pieter Jansegers
http://microblogs.ning.com

[azareus]

hire an economist to find out!

yes, there was a pre-ipo co. in 1999 based in palo alto that had a 'staff economist.'

this person's job (employee one-hundred-something) was to think big thoughts.

the co. had approx $32,000 in revenue for the quarter when it went public., reaching a market cap of over $400 million within a month, then merged wither another look-alike in an $800 million deal.

the stock held up, through levitation, then died after approx 20 months in the 9/11 debacle, like all internet hanger-ons.

the vc's and founders made millions - alas, not billions...

this Trimalchian revelry is not quite to that level, but it's getting close. who knows what will happen if microsoft consummates the microhoo deal unless google buys yahoo to form 'goo' the ultimate sticky eyeball experience

[WeCanDoBIZ]

Maybe a shake-out is needed

Whn you start seeing people getting money when they have no clear reveneue plan and when you hear people saying ROI doesn't matter, you know it's time for a short, hard slap.

There is no doubt in my mind that stupid money is being thrown at some Web 2.0 companies - stupid amounts by stupid people who think that they've found a way to dodge basic economics. They hadn't in 1999 and they haven't now.

The recession is a red herring in this context; it is market realities that will actually shake this thing out. Don't think all Web 2.0 companies will be victims though - there are actually some genuinely good businesses here. Hopefully the whole shake-out will leave more sensible investment opportunity for the ones that are still standing afterwards.

Ian Hendry
WeCanDo.BIZ
http://www.wecando.biz

[YankeePoodle]

success failure ratio

For every one successful effort there would be 10s or more companies that would be failures. That is true in most of the businesses, and the web/internet is not an exception. Web2.0 bubble is no way comparable with the .com bubble, but there will be lot of blood-letting that would happen as in every business cycle. I am sure that there are many wonderful players that would survive if the Web2.0 bubble busts. Some just go home and others will scale down to survive.

The scenario for Web2.0 companies is not as bad as project, but they will take hit because of the existing economical conditions.