Mike’s post on the big revenue opportunities for star bloggers and their blogging networks–and the related shift from nice and friendly to playing to win has alot of truth to it–witness the immediate responses from other blog entrepenurs mentioned in his post, like Rafat Ali and Henry Blodgett.
What’s most interesting to me here is how, in just three years, blogs have eclipsed big media in many categories as the dominant media entities online. There is no question but that the lower-costs of developing media on the web are leading to powerful returns.
And yet, the very affordability of developing media on the web means that it’s a competitor’s game–there is perpetually a better mousetrap to be built. In the tech world, this means the rise of GigaOM and Read/Write Web and Mashable against TechCrunch and Paid Content; in the popular culture world this means the PopSugar blog and the AOL-owned TMZ beating down both Entertainment Weekly and Perez Hilton.
Or, to put it another way, is it possible to put a high valuation on a property that has almost no embedded switching cost?
What does paying big bucks to acquire blog media networks do for anyone who has the brains to built it themselves (which means only old media companies, phone companies, wanna be media companies, dot com millionaires, radio station companies and holding companies would consider such acquisitions)?
I like the idea of big ticket tech blogs aligning to take advantage of the network effect; it’s smart, but the truth s that the media business is tough and audiences are fickle, no matter how cool you are.
Update: I wrote this last night, but decided to read it again before publishing; meanwhile Kara Swisher wrote an amazingly funny take off on Mike’s post.
Update 2: Sweet post by Kumbaya Scobelizer; the nice Robert who remembers bloggers as community.

Mike’s post on the big revenue opportunities for star bloggers and their blogging networks–and the related shift from nice and friendly to playing to win has alot of truth to it–witness the immediate responses from other blog entrepenurs mentioned in his post, like Rafat Ali and Henry Blodgett.
What’s most interesting to me here is how, in just three years, blogs have eclipsed big media in many categories as the dominant media entities online. There is no question but that the lower-costs of developing media on the web are leading to powerful returns.
And yet, the very affordability of developing media on the web means that it’s a competitor’s game–there is perpetually a better mousetrap to be built. In the tech world, this means the rise of GigaOM and Read/Write Web and Mashable against TechCrunch and Paid Content; in the popular culture world this means the PopSugar blog and the AOL-owned TMZ beating down both Entertainment Weekly and Perez Hilton.
Or, to put it another way, is it possible to put a high valuation on a property that has almost no embedded switching cost?
What does paying big bucks to acquire blog media networks do for anyone who has the brains to built it themselves (which means only old media companies, phone companies, wanna be media companies, dot com millionaires, radio station companies and holding companies would consider such acquisitions)?
I like the idea of big ticket tech blogs aligning to take advantage of the network effect; it’s smart, but the truth s that the media business is tough and audiences are fickle, no matter how cool you are.
Update: I wrote this last night, but decided to read it again before publishing; meanwhile Kara Swisher wrote an amazingly funny take off on Mike’s post.
Update 2: Sweet post by Kumbaya Scobelizer; the nice Robert who remembers bloggers as community.