Will Web 2.0 Companies Make any Money? Does it Matter?

Mar
6th

As all of you know, I’m a prime proponent of Web 2.0 as a technology that can create an Ebola (viral) effect. This is far different than thinking that all the Web 2.0 companies will survive and flourish.

YouTube sure gets a lot of traffic, but will Google be able to translate that into cold, hard cash? Sara Goo at Washington Post doesn’t think it will be easy.

She says,

“In the few months since Google paid $1.65 billion to acquire YouTube, both companies have tried to come up with a formula to turn the hugely popular online video site into a moneymaking venture.”

YouTube is not the only Web 2.0 company that has issues translating traffic to cash.

I don’t want to declare winners and losers in this race to profitability, but I do want to point out that we’re seeing the classic boom/bust cycle we saw a few years ago with the proliferation of internet companies in the mid to late 90s.

There will be a few winners who emerge, but the one constant, is that the Web 2.0 revolution, much like the internet revolution will transform the way we do business.

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Filed in: Corporate Strategy, Web 2.0, Youtube • Tuesday, March 6th, 2007

 

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