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The second recession in the Internet sector is now led by user-generated sites - another dot com look-alike bust?
Specia Correspondent
Jan. 16, 2007

After the dot com bubble and final gloom and doom, the second recession has started for the Internet sector. User-generated sites – the so-called blogs, video upload sites, and so on, lead it. The business model is simple for YouTube type sites. Build it and sell it. Let others worry about its future.

The invertors are refusing to get involved with these sites. These blogs has a lot of crap. Seldon the blogs or user-generated sites have serious or valuable content.

User generated sites are actually losing ad spaces. Although they will again gain ads by only 15% by 2012, their revenue growth rates are miniscule.

It looks like dot com all over again.


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