While browsing the latest Carnival of the Capitalists, I found a great article on the topic of the blogosphere, very critical of the blog “networks” (Weblogs, Inc. and Gawker for example). The premise is that with any business idea with such a low barrier to entry will never be able to sustain profits (ie., from advertising revenue or “memberships”) over time.
The article compares the weblog network “bubble” with the gaming network situation a few years ago. Gaming websites received a lot of cash from venture capitalists and advertising very quickly, and there are signs that the crash experienced by those networks may hit bloggers if some lessons aren’t learned.
Take a look at the Implosion of the Blogosphere.
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