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Dot Com Doom: Is it all over for Internet startups?

Posted by admin on Apr 4, 2009 in geekery, opinion, technology

burst-your-bubbleOnce people couldn’t get enough of Internet start-ups. Companies¬† moved from cynical to seriously obsessed and it seemed every day a hot new site was starting with investors ready to splash the cash to get a piece of the digital pie. But recently we’ve seen a turn for the worst, and it’s not just the falling economy that’s led to the downward spiral of success of the once salutated sites.

Earlier this year Gawker media, a SF startup that spearheaded the dot come boom abandoned many of their flagship titles, fired staff,  and reluctantly joined the gradual disintegration of the online market. It seems the dot com business is no longer as profitable as it was, nor is it attracting the investors/advertising revenue so it has fallen into a catch 22 trap.

But why has this happened? When sites flourish in terms of traffic you’d automatically assume these figures would be followed by cold hard cash, but that’s not the case? Is it the fault of the bedroom blogger- the whimsical at home writer whose words devalue those that are paid for? Or could it be that though the model looks positive, making money off free content is harder than previously thought? Read more…

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