Wednesday, 2 May 2007

The Day Digg Died - May 1, 2007


Digg got to experience a mutiny yesterday, a modern day Boston Tea Party of sorts. And much like the Boston Tea Party of old it signifies the death of an empire and the creation of a 'new country'. What that new country is and/or might look like is anyones guess but you can bet that Digg won't be part of it.

For those of you who don't know what happened to cause this ruckus click here. For those of you who do...read on.

In a nutshell Digg made two critical decisions yesterday. One which was right (pulling the protected content) and one which was wrong (reposting the protected content). The second decision guarantees that they have no long term viability in the market. Digg basically thumbed its nose at the entire HD-DVD industry. Can you guess what the next step is? If not, ask Google. Google can afford making those kinds of bets, Digg can't.

Don't get me wrong I'm all for free speech but I'm equally in favor of protecting Intellectual Property. Flying in the face of your own Terms of Use, flying in the face of IP rights/laws will absolutely, positively (to make up a word) solidly plant you in no mans land. Would Digg allow someone to publish their IP? I don't think so. Actually I know they wouldn't. They've sued companies for infringement on their name. Digg is done, finished, gone.

Here is the interesting twist which created my comment of a 'new country'. There is now a market opportunity for someone to take Digg's model and 'get it right'. Case in example; Napster/iTunes. If anyone has any ideas let me know.

Digg, you should have sold last year when you could have. I'm sure Greylock, Omidyar and crew are thinking the same thing right now.

Final note. May 1, 2007 also confirmed one other suspicion I have always had. It confirmed that 90+% of Digg posters are made up of 10 to 14 year olds. Advertisers if you are looking at that target market Digg is the place to go.

No comments: