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Tough Times for TechCrunch in ‘09?
By Mark Evans | December 26, 2008
If you’ve wondered how Michael Arrington became one of Silicon Valley’s biggest stars over the past few years, Elias Bizannes breaks it out down in an extensive post.
TechCrunch has thrived for a number of reasons, including being at the right place at the right time. Arrington and TechCrunch emerged at a time when the online start-up world was beginning to emerge again after a nuclear winter following the end of the dot-com boom. There was an appetite for news about interesting companies, and Arrington delivered it in spades.
To his credit, Arrington became more than just a popular blogger who carved out a comfortable living by just writing. He started several other blogs, threw parties, launched conferences, invested in new start-ups, and built the TechCrunch brand through a flurry of public appearances.
It’s truly impressive and one of Silicon Valley’s biggest Web 2.0 entrepreneurial success stories.
But what does the future hold for Arrington and, arguably, other Web 2.0 dojos such as Om Malik (GigaOm), Richard MacManus (ReadWriteWeb), Pete Cashmore (Mashable) and Allen Stern (CenterNetworks) in 2009?
With the economy sputtering and venture capitalists reluctant to finance start-ups, it will be interesting to see how the leading Web 2.0 news organizations respond strategically so they can thrive during tough times.
One of the fundamental questions is whether there will be enough “juice” to support growth or, for that matter, the status quo. If advertising declines, particularly by attention-seeking startups, how will that impact TechCrunch, GigaOm, ReadWriteWeb, et al? And if the number of new start-ups shrinks, does that create less editorial fodder to attract readers?
In other words, if the Web 2.0 world becomes less active and engaged, how will that affect the businesses that cover it?
What TechCrunch, GigaOm, et al have going for them is strong brands that should give them the wherewithal to weather the storm. If times get difficult, the stronger players, in theory, should be able to survive while second and third-tier players struggle.
As well, the leading players have two other advantages: diversified operations (multiple blogs, conferences) and the relatively low operating costs. (GigaOm also has $4.5-million of venture capital).
My sense is TechCrunch, GigaOm, et al will be able to navigate difficult times, although they’ll have to be more pragmatic about expanding operations. If they can make it through relatively unscathed, they’ll emerge as stronger entities and have no lack of opportunities to pick up assets (blogs, etc.) that aren’t so lucky.
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Topics: Web 2.0 |