Sustainability of web business

We’ve been there before – .com bubble & bust.  But what will be the impact of the current economic collapse on the WWW business?  The first time round many of the businesses did not have any real business  model.  The last number of years have seen ‘established’ businesses embrace and exploit the technology e.g. www.ryanair.com moving to a web based booking model only.  However at the same time we have seen businesss such as the newspaper industry being almost annihilated by the move to the online world.

In two recent pieces the Economist references the challenges being faced by many of the web2.0 and/or Silicon Valley companies.  For instance how will Facebook extract value from its global penetration, how will Twitter make money?

Seems to me we will have the same result again.  Those with a sound business model will survive.  And a sound business plan includes providing something of value – ie something worth more than it costs.  www.linkedin.com seems to be able to generate revenue from its business members.  I think the www.ft.com offering whereby a limited amount of free reading is provided may be a way forward for newspapers.  However business’s also need to understand that the technology itslef has changed the business environment.  News cannot be delivered by print – comment/analysis/ out of the box thinking can be delivered in print.

Should be an interesting next 12 months.

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