Web 2.0 alive and well despite El Reg
El Reg really doesn’t like Web 2.0 does it? If it’s not Andrew Orlowski’s supercilious attitude towards anyone who actually uses Web 2.0 or who wants to make money from Web 2.0, then its general claims like this about Web 2.0 being dead.
Of course, in the real world (as opposed to the jounalistic world or the business world) Web 2.0 is thriving. It's impossible to listen to the radio or watch the TV without someone going on about Twittering, and there are now several TV shows devoted to showing harvested Web 2.0 user-created video content. Not only this, but more than a few marriages have collapsed as a result of social networking and virtual reality sites. As for making money – the Apple iPhone app store seems to be doing quite well when it comes to selling user-created content over the web for people to use on the web.
Like any new technology, there will be many investors who think that consumers will sign up to any new Web 2.0 product simply because it's new. Of course, this isn’t true, but the hype put out by companies looking for investment gives a false sense of what Web 2.0 is supposed to be like. Web 2.0 should be judged on the same grounds that other sectors are judged. If you want Web 2.0 to make money, you need to do what other industries do: sell something that people want to pay for and have no choice but to pay for. And jouralists should expect this and not be all superior when the hype turns out to be nothing but hype.
The reason Web 2.0 is so popular with web users is that Web 2.0 is cheap to run, cheap to use and focuses around services that users don’t mind if they go down every now and again. Trying to make a lot of money in an open market on a product that has a tiny cost per user overhead (e.g. Friends Reunited or Facebook) is always going to be very difficult. The same is true when selling something that people can already do better and more reliably on their local systems (e.g. Google web applications).
Web 2.0 products that do make money are not those that people merely like to use, but products that people have to pay for to use because they can only accessed through one channel, or where advertisers will stump up because of a single channel's dominance. Would Apple make money on iPhone apps if you didn’t have to buy them through Apple’s own service? Not a chance. And would advertising space on Google cost anywhere near as much if there was genuine competition in the search-engine marketplace? I doubt it. This is where the innovation will be focused – not on the products themselves, but on making money from those products.
Web 2.0 has become immensely popular in a very short time, so it's far to early to judge how much money can be made from it.