Sounds just like 1.0, no? Some 1.0 sites got the eyeballs - they just couldn't make money from them.
and
He [Murdoch] does [see MySpace as useful], but he also got it for next to nothing, and he's got money to burn.
....................
All true and actually, almost precisely my point.
My position is simple: the 1.0 bubble burst was caused, in large part, by a 'correction' of the valuation of hyper-valued Internet firms. Many were appropriately 'corrected' out of existence.
The so-called 'web 2.0' outlets, once they reach the right level of hotness, generate 1.0 type frothiness but this doesn't seem to be creating a crude replay of 1990's style activity. Established firms are acquiring those 2.0 products which rise to the top and are using them as marketing/buzz generation platforms - a still evolving technique.
Of course, parent firms want these ventures to become profit centers and are frustrated when money doesn't automatically follow attention. Perhaps this frustration will eventually result in the disappearance of some our beloved sites. Time will tell.
But there's a difference between YouTube, on its own, being over-valued and YouTube as a division of the deep pocketed GOOG or MySpace as a division of NWS for that matter.
.d.