Wednesday, August 15, 2007

Web 2.0 Myth Busting, Part 1

The June/July edition of Streaming Media magazine contains an article by Jose Castillo titled "Giant Web 2.o Lies."

Here is a quote: "Instead of a few large media giants pushing out information, we now have millions of individuals sharing information, video, audio, and photos via the internet. Not only is information being shared, but conversations are taking place around that information, and the power of participation is gradually overtaking the power of publishing."

That is the power of web 2.0 that manifests itself in webcasting: the ability to create one's own content relatively inexpensively and compete against any organization in the marketplace of ideas. Madison Avenue is losing its hegemony over corporate messages.

In this article he addresses what he calls "common myths"about web 2.0.

Myth #1 is that traditional businesses cannot make money using online video. To counter that claim, he cites a blender company that put video on YouTube of wacky stuff being put in its blender. Direct to consumer sales increased five-fold in six months.

Even without that evidence, I would say the following: what business concern out there doesn't believe deep in its gut that if people just knew about the product or service they offered and how it really worked, and why it was different than competitors, the market would embrace them?

What business doesn't have a story to tell?

Myth#2 is that Podcasting is dead. To counter that claim, he sites how one company scored a nice payday monetizing podcasts with conventional commercials.

Again, even in the absence of that specific evidence I would offer the following comment: there is an absolute ton of video on the internet being efficiently distributed via RSS, and there are a number of aggregators out there helping people to find that content and get it onto their "third screen" so they can watch it at their convenience.

I would submit that podcasting is just getting started.

I will comment on the remaining myths in my next entry.

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