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Play those old media rules again

Posted by mwelch April 11, 2007 05:50 PM

Source: GigaOm

photobucket.jpg

Photobucket has 38 million users who use it to host pictures and video on their MySpace pages for free. Recently it was rumored to be valued at $300-400 million. Except that today MySpace just blocked Photobucket images on MySpace. Why? Because Photobucket started selling ads on videos that get shown on MySpace. Om Malik says some optimists thought the old rules for media wouldn't apply online. But they do. Namely, "don't depend on one partner" and if you do, "don't make waves." Even Google had to pay MySpace, so "pay to play and ensure longevity" And above all? "Free is a tactic, not a business model."

Related:
Photobuckets of cash?

http://gigaom.com/2007/04/11/five-lessons-from-the-photobucket-fiasco/

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