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.
Updated February 6, 2012 and originally published September 28, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.