Financial Crisis Forces Site Shutdowns
Alex Covert — December 13, 2008 — Pop Culture
References: technologyreview
The current financial crisis is stirring the social network pot, allowing some to rise to the top (or perhaps more appropriately, not to sink so low.) A long list of yesterday's wonder-sites such as Hi5, LinkedIn, Jive, Pownce, and Value have either scaled back, been sold or shut down entirely. The winners, who still may or may not weather the storm, are Facebook, MySpace and Twitter.
Bottom line: Money makes the world, and the Internet, go round.
Implications - But the thing about the Internet is that it's viral and cyclical. There are certain sites -- Facebook, for instance -- who seem to have carved out a valuable niche in the psyche of Generation Yers. It's hard to imagine them not succeeding. The other companies? I'd say they're at the mercy of changing Internet emotions.
Bottom line: Money makes the world, and the Internet, go round.
Implications - But the thing about the Internet is that it's viral and cyclical. There are certain sites -- Facebook, for instance -- who seem to have carved out a valuable niche in the psyche of Generation Yers. It's hard to imagine them not succeeding. The other companies? I'd say they're at the mercy of changing Internet emotions.
Trend Themes
1. Financial Crisis in Social Networking - The financial crisis in the social networking industry creates opportunities for disruptive innovation.
2. Consolidation of Social Networking Sites - The shutdowns and acquisitions of various social networking sites highlight the trend of industry consolidation.
3. Resilience of Dominant Social Networking Platforms - Facebook, MySpace, and Twitter demonstrate their ability to weather the storm amidst the social networking oversaturation.
Industry Implications
1. Social Networking - The social networking industry is experiencing a period of turbulence and change, creating opportunities for disruptive innovation.
2. Technology and Internet - The financial crisis and shutdowns of social networking sites impact the technology and internet industry.
3. Digital Advertising - The resilience of dominant social networking platforms presents opportunities for disruptive innovation in the digital advertising industry.
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