New Media Economics Today
“Work It Harder Make It Better Do It Faster, Makes Us stronger” DaftPunk
Looking at revenues & users for Ebay, Yahoo & Google is where new media economics really begins to come into it’s own. This is web 2.0 theory being proven in the market today.
Times of great change mean times of great opportunity.
Web 2.0 is a shift to from tight, hierarchical architectures which realize exponential network FX, to loosely structured architecture which realize combinatorial network FX.
More simply, Web 2.0 is about the shift from network search economies, which realize mild exponential gains – your utility is bounded by the number of things (people, etc) you can find on the network – to network coordination economies, which realize combinatorial gains: your utility is bounded by the number of things (transactions, etc) you can do on the network.
via bubblegeneration – strategy, business models, and innovation