Tuesday, March 27, 2007

Media & Entertainment

Loser - Mashup sites that does not offer "real" products. The problem with the mashup sites is that the lack of a "real" product offering makes their revenue stream from advertising short-lived. The abundance of information allows firms that integrate information with relative ease. This would eventually lead to commodization of information and advertising revenue will be diluted as more of these sites enter this space.

The mashup trend should benefit companies that offer physical product or "real" services a new channel to promote their products and service their customers. The ability to provide customized products and services with lower cost of revenue would allow firms to capture higher margin and be more profitable.

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