The Social

NEW YORK--The state senate in Albany was in a bit of a shambles Monday. So instead of speaking in-person at the Personal Democracy Forum as planned, NY Mayor Michael Bloomberg used Skype to make his keynote address.

"Through the miracles of modern communication, we're essentially together," Bloomberg commented to the audience at the Frederick P. Rose auditorium here in midtown Manhattan. He then spoke about how New York is using the assets of the digital age to make more information available to the city's residents--something that Bloomberg can pitch well, considering he made a fortune as the founder of the business news and information company that bears his name.

Mayor Michael Bloomberg

(Credit: NYC.gov)

Bloomberg's new initiatives include Skype and Twitter accounts for NYC 311, the city's information hotline that Bloomberg launched several years ago; a partnership with Google to get more detailed information about exactly what people are searching for on municipal government sites (and what they can and can't find); and "Big Apps," a new contest for developers to crunch and remix city data into Web or mobile applications for the masses.

The economy, however, may get in the way. Any ambitious new city projects are taken with a grain of salt these days, and with good reason.

I, for one, was scrambling to get to Bloomberg's talk on time because cutbacks and delays on the B-D-F-V subway line had added literally an extra half-hour to my commute from downtown to the conference venue at Columbus Circle. Griping about the city budget is pretty commonplace around here these days, and Bloomberg himself is no exception.

"If any of you from around the world wants to move here," Bloomberg quipped over the Skype connection when conference organizer Andrew Rasiej commented that a thousand people were on hand, "we would love to have you. We need taxpayers."

The official information available on the Web to New York residents includes public school progress data and citywide performance reporting. Beyond that, Bloomberg's administration has chosen to support new and more efficient ways of doing business: it has given the thumbs-up to collaborative workspaces and launched a venture fund for tech and finance start-ups, among other things. These are all part of a way to combat the fact that the Wall Street meltdown has left scores of the city's professionals out of work.

With "Big Apps," Bloomberg is encouraging developers to participate in a contest that "will challenge all of you, and the whole tech world, really, to come up with new applications using city data."

"We'll be releasing a huge volume of data from a number of agencies," Bloomberg said before the Skype connection briefly cut off. Rasiej re-dialed in, and Bloomberg continued that he hopes the fruits of Big Apps contests will "create the connectedness that will benefit the city economically, civically, and socially."

If developers aren't willing to act solely out of a desire to help the city, Bloomberg said that Big Apps will indeed have cash prizes, as well as an even bigger incentive.

"I'll up the ante by taking the grand-prize winners out to dinner," he said.

Good to hear that's still in the budget.

Amid economic woes, stagnant growth, and a management shakeup, onetime social-networking pioneer MySpace has announced that it has cut its head count by slightly under 30 percent in what the company calls a "return to start-up culture." Well, that's a nice way to put it.

Reports had circulated that MySpace would be laying off nearly half its employees in a move that had delayed its relocation to a bigger office space in the Los Angeles area. With the layoffs, MySpace's full-time U.S. employee roster will be down to 1,000 people--which means somewhere just south of 500 jobs were cut.

MySpace said that the layoffs are evenly distributed across all U.S. divisions of the company. Since MySpace also operates a number of offices overseas, it's not yet clear how they were affected (if at all), and representatives declined comment as to whether international offices would be affected down the road. CNET News has heard rumors that there may be consolidation in some of MySpace's European offices, something that the company did late last year when it merged its Amsterdam and Berlin offices.

"Today the domestic restructure is the only info we can share," a MySpace representative said in a phone call Tuesday.

Owen Van Natta, CEO of the News Corp.-owned social site, said in a release: "Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company. I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product."

Van Natta, the former chief operating officer at Facebook, was hired as CEO of MySpace late in April after a short stint at the head of start-up Project Playlist. Former CEO Chris DeWolfe had stepped down earlier that month, reportedly at the behest of Jonathan Miller, the new digital czar at News Corp. Executive shakeups at MySpace had been happening sporadically for nearly a year at that point.

MySpace's new executive lineup gives it solid entertainment street cred: Van Natta was joined by former MTV digital exec Jason Hirschhorn and former AOLer Michael Jones. Late last year, another MTV digital-media executive, Courtney Holt, joined MySpace as the head of its new MySpace Music division.

A source with knowledge of the situation said that senior management was spared Tuesday's cuts.

Launching MySpace Music, which focuses on free streaming music supported by advertising, was a return to the company's roots: once a hub for indie band promotion and community, MySpace had grown massive before Facebook began to catch up to it in international and then U.S. traffic. Partnerships with the likes of Google and a prominent endorsement of the OpenSocial developer initiative didn't help it regain traction as a networking destination.

Holt told CNET News in March that MySpace Music's traffic was "huge." But record label executives--who are partners in the MySpace Music joint venture--reported dissatisfaction with the revenue it was generating.

Last update at 11:56 a.m. PT.

NEW YORK--As he kicked off the Wired Business Conference on Monday, Wired magazine's editor in chief, Chris Anderson, started talking about Jell-O.

Anderson was explaining the thesis of his forthcoming book, "Free," about the realities of making a profit and building a business in an environment rife with digital goods that can be replicated at almost no cost. The Jell-O angle came from an anecdote that detailed how, in the late 1800s, the manufacturers of the then-bizarre dessert got the word out about it by distributing free Jell-O recipe books around the United States.

"Giving away one thing free could help them enter the market, create brand recognition, and create demand for something that was paid," Anderson said.

The Jell-O reference probably resulted in quite a bit of head-scratching, as this was not the Wired crowd of wacky futurism, sci-fi fandom, and gadget hacking. With a slant of "Disruptive By Design," the Wired Business Conference's target audience was corporate New York, a city full of suits who have been operating in lockstep for decades and yet have seen all hell break loose in the past year.

"(These are) seemingly unprecedented times because the time is right for disruption," Howard Mittman, Wired's publisher, said in the morning's first talk, as he introduced Anderson onstage at the Morgan Library & Museum, a historic space with deep ties to business innovation in New York.

The conference was also, in effect, a marketing pitch for Wired itself, which has seen the media industry's crisis take a massive bite out of its advertising pages. By bringing the likes of Amazon.com CEO Jeff Bezos and Tesla Motors founder Elon Musk to a day of panels and talks, the Conde Nast-owned brand was attempting to give the hard sell about its own portfolio of ideas and open it up to a crowd that's historically been more likely to pick up Fortune or Forbes at a newsstand.

As he discussed disruptive business models, Anderson revealed that his take on "free" is that businesses have to accept that some things just do not, and should not, have a price tag attached anymore because the Internet has driven their costs to zero. Companies should focus on where they can charge money.

"In the 21st century, with virtual stuff...you've got swords and other digital goods in games and online spaces, and you're looking at a different economic model," Anderson said. In many video games, you can play for free, but the game experience can be enhanced with paid services. The Disney-owned kiddie virtual world Club Penguin, for example, makes most of its money with paid virtual enhancements: many a parent in the audience was familiar with their kids' desire to buy a better "igloo" for their virtual penguins. Playing for free is an incentive not unlike the Jell-O recipe book.

In a less silly context, there'sadvertising company OpenX, whose CEO Tim Cadogan was on a panel that followed Anderson's talk. OpenX gives away its open-source ad platform software but charges for consulting and other services.

One of the biggest innovators in the "free" model, Anderson said, is actually Microsoft--derided for years by geeks as the quintessential plodding software company. He explained that Microsoft didn't do much to derail piracy of its products in China because it saw the proliferation of the Microsoft brand as a way to get a foothold in a developing market that would eventually be able to pay for its products. (Not everyone would agree with this assessment, to say the least.)

"What you see in piracy is essentially the marketplace imposing "free" upon you," he said. "With a little bit of looking the other way, (Microsoft) let pirates be their best marketers...so that someday, that would come back as revenues as the country developed. They accepted piracy as a term of gray marketing."

Virtual goods are a huge business indeed, especially when it comes to online gaming, but the audience at the Wired Business Conference might not have the same take on it. The music industry is still in turmoil over the decade-plus of proliferation of free music on the Web that caused sales to plummet. Newspapers and magazines, meanwhile, are suffering due to declining revenues, and everyone's still afraid of Google (even if Google has now shown some vulnerabilities). An entire economic model based on the success of World of Warcraft's magic spears and Radiohead's onetime name-your-own-price experiment are radical, to say the least.

Or maybe the audience will prove more receptive to "free" and its manifesto. We have learned in the past year, after all, that Wall Street was dealing for decades with a whole lot of stuff that was about as tangible as a Club Penguin igloo.

IAC chair Barry Diller at last week's Founders Club party.

(Credit: Alexander Porter/New York Founders Club)

NEW YORK--From a seventh-floor roof deck at Rockefeller Center, Barry Diller, head of digital-media conglomerate IAC/InterActiveCorp, was addressing the well-dressed crowd at Thursday evening's Founders Club cocktail party.

"There was a time when 'network' was all the buildings on Sixth Avenue," Diller said, gesturing to the west, home to the midtown office buildings that have housed New York's once-unflappable broadcast and print media powerhouses for decades, "and of course now it means something totally different."

The Founders Club, with a watertight guest list, drinks courtesy of Patron tequila, and a decorative pool filled with miniature sailboats bearing the logos of New York's most talked-about start-ups (perhaps a nod to host Diller, an avid yachtsman), was one of the more highbrow events at the second annual Internet Week New York, which culminates Monday night with the Webby Awards gala.

In spite of how rough things have been for the industry over the past year, energy levels were high and there was no shortage of things to do. Internet Week attendees could fill their week up with panels, networking breakfasts, ad industry conferences, start-up expos, and loads of parties. ("It's miraculous that you are all standing up, because all I hear about are these parties!" Diller exclaimed at Founders Club.)

One thing's for sure: New York's tech and digital-media community has been humbled and chastened, and it's ready to get back on its feet. Unfortunately, now there's a whole new problem: what next?

On the bright side, there seemed to be near-universal agreement at Internet Week that changing times present opportunities to explore new territory. A handful of people noted throughout the week that online video-related events had especially high rates of attendance, as traditional media and advertising companies sent marketers and business-development types out to figure out just how they can make a buck or two off it.

There are legitimate reasons for some of this optimism, especially for smaller companies that haven't exactly had the easiest time in New York to begin with. Rents are cheaper now. Prospective employees are willing to work for lower salaries. And once-dominant New York industries have been brought down a few notches, leaving scrappy start-ups in a position that's far from undesirable--especially since big media and finance companies, short on ideas for how to stay afloat, have finally started to listen to them.

"On behalf of the crippled United States economy and the crippled New York City economy, I'd like to thank you for doing what you do," Business Insider founder and former Wall Street analyst Henry Blodget said to an audience of entrepreneurs and venture capital types at the blog's "Startup 2009" pitch competition Wednesday. "When you hear people talking about green shoots in this environment, this is what they're talking about."

Even the big companies seem to think the little guys are doing something right, or at least, in difficult times, they can make it seem a little sunnier by putting an entrepreneurial spin on things. New AOL CEO Tim Armstrong, for example, referred to AOL as "the world's largest start-up-slash-turnaround." He's not entirely off base. In New York, anything digital has historically been a bootstrapping industry in and of itself.

"I think the financial meltdown might be the best thing that ever happened to the New York start-up scene," Chris Dixon, co-founder of the fledgling Hunch, told CNET News at the Founders Club event. Dixon, who sold his previous company, SiteAdvisor, to McAfee in 2006, believes that in the Web 2.0 boom, New York's tech scene was even more upstaged by the San Francisco Bay Area's than it had been in the first dot-com gold rush. "(There were) hedge funds sucking up all the talent like they didn't in the '90s," he said.

But the excitement about the potential for innovation is tinged with plenty of confusion that can descend into downright cluelessness, brilliantly parodied in a YouTube-hosted music video called "Mad Avenue Blues" that was making the rounds last week and was the subject of many an Internet Week cocktail party conversation. Set to the tune of Don McLean's "American Pie," the video details the panic that one of New York's biggest industries went through in "the year the media died," and its lyrics full of marketing jargon are uncomfortably spot-on.

All joking aside, Internet Week made it clear that across the industry, nobody seems to be really sure what direction to take, and this can lead to major friction. In his opening address at Digitas' Digital Content NewFronts event on Wednesday, the ad agency's chief creative officer Mark Beeching gave an impassioned speech that included, among other things, the insistence that media companies give up on the fight against digital piracy because it's just not worth it.

"I can name a half dozen media executives who will have something to say about that," somebody remarked to me about Beeching's talk the following day, where even more digital-advertising types had gathered for cocktails and a presentation from ad agency Crispin Porter and Bogusky, which has gained serious geek street cred for edgy campaigns like the Burger King "Whopper Sacrifice" stunt.

At least they can agree on Twitter
Then there was the back-and-forth banter in the highly anticipated I Want Media panel on Wednesday, where it seemed like the only thing the panelists--who came from both print and digital media--could agree on was that the industry's more or less enamored with Twitter. Alan Murray of the Wall Street Journal, a firm advocate of media outlets charging for online content, sparred onstage with Nick Denton, founder of entertainment and gossip blog network Gawker Media, who stands staunchly in favor of advertising.

"There's not enough advertising out there to support us," Murray insisted. "The model, digitally, in part because it's so easy to move from place to place, just doesn't work."

Denton retorted, "That is so not true," claiming that "most newspapers, apart from The Wall Street Journal and maybe the Financial Times, they have nothing that people are going to pay for."

But over the past year, as the crisis in the media industry grew worse, Denton didn't sound quite as unflappable. Over the winter, he had been predicting a near total collapse for advertising-based content, and the company spent months trimming away the fat, casting aside unnecessary cargo. Gawker Media consolidated two blogs, sold several others, and laid off a number of writers and editors. It's probably turned into a far more efficient operation.

But things turned out better than he expected, and on Thursday night Gawker partnered with the Interactive Advertising Bureau (IAB) for a party on the roof of the blog network's downtown headquarters--the latest in a parade of Gawker roof parties that started popping up as soon as the weather began to warm. There was, of course, an open bar. Waiters brought around trays of appetizers that were certainly several notches up from the fare at Gawker parties of yore, where the catering typically involved ordering pork dumplings en masse from somewhere in nearby Chinatown.

Guests weren't quite sure what was being offered to them. One of the appetizers, they learned upon asking, was pheasant. Another consisted of shot glasses of spicy tomato juice with oysters at the bottom. It was more "Mad Men" than media meltdown.

But ideally, that pheasant was eaten with the knowledge that the industry is still in a grave situation, and it's still not clear how or when it will end.

The Gawker Media-True Blood party last week: They even rented a tent.

(Credit: Kate Miltner)

Last Thursday night, entertainment blog network Gawker Media held a rooftop party at its downtown headquarters to commemorate its advertising partnership with HBO vampire drama "True Blood"--as well as to toast to an edgy publicity stunt in which a fictional "True Blood" blog, Bloodcopy, passed itself off as an actual vampire news blog that Gawker Media had acquired. At least one reporter had been fooled.

As guests left the open-bar soiree, they had the option to sign up for a mailing list to attend future Gawker Media events. It's a far cry from just a few months ago, when Gawker founder Nick Denton was slashing budgets, laying off bloggers, and consolidating underperforming titles.

The city's digital media crowd, at long last, appears to be coming out of hiding.

As New York's tech industry gears up for its second annual Internet Week this week, a seven-day, city-sanctioned hodgepodge of conferences, parties, and the Webby Awards ceremony, there's a vague sense of relief about: things just haven't turned out as badly as everyone feared they would.

"Anecdotally, things feel a little different," said David-Michel Davies, Internet Week chairman and Webby Awards executive director. "It feels better. It feels like the market sort of loosened up a bit. I'm not really sure if that's because it became so hard to be hunkered down for so long and people just had to relax, or if it seemed like the bottom had come and people started to stress out a little less."

Not so long ago, more than a few people around town were wondering if companies were even going to be willing to stretch their budgets enough for a Webbys entry fee. But this week, the concerns appear to be limited to whether it's possible to catch both an Al Gore keynote at Digitas' NewFronts '09 event and a subsequent panel across town featuring both Craigslist founder Craig Newmark and Twitter co-founder Jack Dorsey, or what costume to wear to Wednesday night's CollegeHumor party, which has a theme that seems to be vaguely inspired by comedy troupe Lonely Island's much-blogged video "I'm On A Boat."

Nobody's pretending that there hasn't been a rather brutal recession humming along in the background. The administration of Mayor Michael Bloomberg, whose Office of Film, Television, and Broadcasting co-organizes Internet Week, has put several initiatives into effect to attempt to get laid-off Wall Streeters back to work at finance or tech start-ups. There are about a half-dozen Internet Week events where employment is the clear focus. Events with entry fees have been advertising discounts, and some parties feature drink specials rather than open bars.

David-Michel Davies said he still expects an upbeat climate.

"The interesting thing to me is that all the conversations I've had with people running internet companies is that a lot of them are doing well and still trying to hire. If ever there was opportunity somewhere, it's in this industry," Davies said. "There's a ton of opportunity in this sort of industry, and it's always been hard to have any great engineers in New York because they were so well paid in financial services."

And the across-the-board difficult financial climate could, in fact, be the catalyst for a more productive week of tech networking, eliminating some of last year's evident gulf between scrappy start-ups and seemingly invincible stalwarts of Gotham finance and media. The big guys, these days, are in need of some ideas.

"We have more participation from companies and organizations than we did last year, and to be honest, at the beginning of the year we were all pretty worried," Davies said regarding the health of Internet Week. "It's 100 percent dependent on the energy and participation of the city at large."

We'll see if they have their game faces on.

Everybody's playing the Facebook valuation game again, in light of persistent reports that the social network is in need of more cash to fuel its rapid and expensive global expansion.

The rumors aren't too surprising. Given the recession and the tough advertising climate, the numbers getting tossed around are some of the lowest we've seen recently.

Currently circulating: Facebook CEO Mark Zuckerberg rejected a fresh round of funding that would have valued the company at $4 billion. Another: one potential investor submitted a term sheet for a valuation in the neighborhood of $2 billion.

What we've heard: Facebook stock trades privately at between a $2 billion and $3 billion valuation. That's consistent with the numbers that everybody else is tossing around. And we've known for a while that when the ConnectU vs. Facebook legal spat was settled, Facebook valued itself around $3.7 billion.

What's new this time around is that reports indicate Zuckerberg is extremely adamant about rejecting investment cash at a valuation he considers too low. When Facebook took a $240 million stake from Microsoft in November 2007, the investment was at a $15 billion valuation. Since then, it's become clear that it was a preferred-stock deal and that Facebook's true valuation has never been that high. But from what it sounds like, Zuckerberg would like it to get up there.

It was long before the massive Microsoft stake, after all, that Yahoo offered to buy the social network for $1 billion. Considering how much Facebook has grown since then--not to mention the new investments--the valuation shouldn't be only two or three times that.

"As a matter of policy, we don't comment on financial matters such as company valuation," a Facebook representative told CNET News in an e-mail.

This post was updated at 8:41 a.m. PT.

Amid stormy economic seas, auction giant eBay has thrown overboard StumbleUpon, the recommendation and "discovery" start-up that it purchased in 2007 for approximately $75 million.

Replacing corny nautical puns with corny alcohol puns, this looks like a symptom of the hangover that followed eBay's acquisition binge during Web 2.0's heyday. Even though many speculated that eBay would use StumbleUpon's technology to power product recommendations, the two companies just didn't find a fit--or a way to make a decent return. eBay's acquisition habits have been more vocally criticized when it comes to Skype, the online telephony start-up that was acquired for $2.6 billion in 2005. It's a well-received product, but never had an obvious niche within eBay and observers have long speculated it would do better on its own.

Financial terms of the StumbleUpon spinoff were not disclosed, but it appears that the company was sold back to the two founders, Garrett Camp (who will serve as CEO) and Geoff Smith, and investors Accel Partners, August Capital, and Ram Shriram of Sherpalo Ventures.

"We are grateful to eBay for its guidance. However, we realized there were few long-term synergies between the two businesses. It is best for us to part ways and focus on our respective strengths," Camp said in a statement. "This change makes it possible for StumbleUpon to continue to innovate and focus on becoming the Web's largest recommendation service."

Last fall, a rumor spread that eBay had hired investment bank Deutsche Bank to help find a buyer for StumbleUpon.

The big question now: Will it do the same with Skype?

Where are the crowds? The Moscone Center was noticeably quieter this year at the Web 2.0 Expo.

(Credit: Evan Bartlett)

SAN FRANCISCO--Stepping off an otherwise quiet street and through the door of the downtown restaurant Roe on Thursday night was, at first, like a foray into a secret fantasy world where no market crash or economic recession had ever happened.

It was the launch party for Yola.com, a rebranded Web publishing platform formerly known as SynthaSite, in conjunction with this week's Web 2.0 Expo down the street at the Moscone convention center. There was an open bar, of course: The signature cocktail was a kir royale, a blend of champagne and blackcurrant liqueur, so champagne flutes were the drinkware of choice in the darkened room. The music was loud. Yola's logo was everywhere--projected on the wall, on T-shirts handed out at the door, on stickers scattered across the bar for the taking.

Yet if you surveyed the scene, there were signs of conscious frugality. The guest list was tight and the party was kept small, with only the ground floor of the two-story Roe booked; the open bar eventually ended, and the kir royales stopped flowing. While Yola was a "silver" sponsor of the conference, the event had not been heavily publicized. The same applied to many of the other scattered parties at the convention. If you knew the details, you could slip into a fun and relatively low-key affair that might even have free drinks and snacks. It was all about doing a bit of digging.

With a "doing more with less" theme, change was in the air at the whole Web 2.0 Expo: This edition of the biannual confab, co-presented by O'Reilly Media and TechWeb, felt like the recession had scooped a hole out of it with a spork. Attendance rates were slightly down, and even though conference representatives said more than 8,000 people came, the halls of The Moscone Center were noticeably quieter than in years past. Yet this is still a must-attend for the majority of the industry. Exhibitors from big tech companies like Microsoft and Adobe, courting developer talent to populate their various platforms and services, said that this is the best way to reach the biggest audience.

And here's what that audience was hearing: that with the harrowing financial climate, there is opportunity in casting off centuries' worth of old institutions that now only serve to hamper innovation.

"The current global financial crisis is the Web's fault," author Douglas Rushkoff said in his Wednesday keynote. "It's a good thing, and...it's really the arresting of a 400- to 500-year process from which value has been extracted from people and companies unfairly and unproductively."

"Six hundred thousand jobs were lost last month, and we've got to believe that the Internet has something to do with the massive restructuring, reorganization, and revitalization of what is our future," Meetup founder Scott Heiferman said in a talk on Friday morning. "They say that a crisis is a terrible thing to waste, so there is this opportunity for us to turn our backs to the screen, to turn our backs to a centralized 20th-century culture where we are dependent on these bloated banks and insurance companies."

That's so last century
The irony lies in the fact that with so many talks at the expo fixed on the opportunities presented by financial difficulties, and the final death knells of the 20th-century way of doing things, the convention itself was still an old-school trade show. The expo floor was full (though not as full as last year) of colorful booths and talkative PR representatives, the panel lineup still packed with the usual marketing and programming buzzwords--ROI, SEO, PHP, RSS--and the art of the business card swap still paramount.

"There's just not a whole lot that's cool this year," one disappointed attendee told me. Another said he'd found that after last month's South by Southwest Interactive Festival in Austin, Texas, there was something stale about the Web 2.0 Expo, even though it was much healthier than many had anticipated. Maybe it's time for a reboot.

You see, if you got past the surface, did a little digging--just like with the after-hours scene--there were some noteworthy talks at Web 2.0 Expo. There was a seminar about just how much you need to know about wine in order to impress business associates, a crash course from Digg's director of business development for old-media types who want to capitalize on the social news craze, and a session about marketing insights from the creator of the Burger King "Whopper Sacrifice" Facebook app. Keynote speakers like John Maeda, president of the Rhode Island School of Design, and the founders of indie T-shirt sensation Threadless, weren't exactly the sorts of conference highlights you'd expect.

In those talks, the lack of banter about monetization and user engagement was refreshing. The T-shirt clad Threadless guys, for example, didn't really seem to be in their element sitting on couches onstage for a keynote "conversation" in front of an auditorium of laptop-wielding conference-goers in uncomfortable chairs. They were 21st century dot-com heroes in a setting that some of the expo's out-with-the-old speakers would likely have characterized as so last century.

One of the biggest and most promising highlights of the conference was the after-hours Ignite offshoot, the latest in a series of wacky geek-culture seminars presented by O'Reilly and spearheaded by Web 2.0 organizer Brady Forrest. Seven hundred people packed into a nearby nightclub for a set of decidedly unorthodox presentations: a mandated number of PowerPoint slides, set on an automatic timer, so that no one could veer off topic or go over time. Ignite events are held all over the world and have quite a cult following; with presentations like "Mr. Hacker Goes To Washington" and "Demystifying Weird Japanese Toys and Tools," it wasn't your typical Web 2.0 Expo material.

Conference representatives seem to think that the conference format still has life in it. "The expo itself is not going to change. I think the content changes from year to year based on what the trends are like and what the market looks like," TechWeb community manager Janetti Chon told CNET News. "We try to be the conference that appeals to all Web enthusiasts...of course the conference will evolve as the market and industry evolve." She does have a point. Web 2.0 Expo is so big and far-reaching that putting any kind of new spin on it would risk alienating some sector of attendees.

Tim O'Reilly, founder of O'Reilly Media, said in his address to the expo on Wednesday that the term "Web 2.0" was "never intended to be a version number." But maybe it should've been. With all this talk, finally, about putting old institutions to rest, maybe the digerati should consider taking the plunge and making our industry gatherings something truly new. If we're going to talk about a fresh start, there are a lot of things that can be done to make our events reflect it.

From what it sounds like, many of us are ready for it.

Douglas Rushkoff at Web 2.0 Expo 2009

(Credit: James Martin/CNET)

SAN FRANCISCO--A conference about Silicon Valley innovation invariably will feature at least one talk about how the old order of American business is hopelessly broken and needs a tech-savvy recharge. At this year's Web 2.0 Expo here, it was author Douglas Rushkoff's "How the Web Ate The Economy, And Why This Is Good For Everyone."

It was a tantalizing title. But most of Rushkoff's talk wasn't about the Web or how it can help steer the world out of a global financial crisis. He focused instead on how the idea of "currency" as we know it, not to mention the notion of the "corporation," is profoundly archaic and that with the market meltdown, we have a golden opportunity to get rid of them altogether.

"We can make pretty much everything great," said Rushkoff, whose book "Life Inc." is coming out in early June, "and if we don't, they will recover and make us miserable for another few centuries."

Corporations and monetary systems, he said, are vestiges of the late Middle Ages when kings and aristocrats were struggling to exert some kind of authority over the fast-rising mercantile class and to rein in independent currencies before they became too powerful. "It was against the law to create value through one another. You had to do it through a corporation," Rushkoff explained. "That was what corporations were for. Centralized currency came up because most towns in late Middle Ages Europe had their own currencies...they had so much extra money they built cathedrals."

(Tip: if you want to make something sound really awful and backwards, talk about how it has roots in kings and feudalism.)