6
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

CNET News Video: Profits? Who needs profits if you're living in Web 2.0?

About Video Transcript

CNET News Video: Profits? Who needs profits if you're living in Web 2.0?

4:32 /

Remember that quaint saying that start-ups should think about profits? Well, it apparently remains a quaint idea in the eyes of some of the leading lights in the Web 2.0 ecosystem. Join Charles Cooper and Rafe Needleman on the CNET News Daily Debrief.

[ Music ] ^M00:00:04 >> Charlie: You know that [inaudible] saying that profits should matter to tech start-ups, well apparently to some in the Web 2.0 episystem, not so much. Welcome to the CNET News Daily Debrief I'm Charlie Cooper here with Webware's Editor Rafe Needlemen. You had a conference last week, a very high-profile conclave of Web 2.0 hotshots and what recession? >> Rafe: You wouldn't know it. I was at the Web 2.0 Summit here in San Francisco, I don't know, hundreds of people there, the rooms were packed, a lot of great talks, we had political commentary. >> Charlie: Al Gore showed up. >> Rafe: Al Gore was there, Arnett Huvington [assumed spelling], Mayor Newsome [assumed spelling], it was a very upbeat event, people were, ya know, doing their Web business. And then we had people on stage like Mark Zuckerburg [assumed spelling] -- >> Charlie: Of Facebook. >> Rafe: of Facebook, and Ed Williams of Twitter. >> Charlie: Well, let's talk about that. About a month or so ago, I believe Ron Conway [assumed spelling] of Sequoia [assumed spelling], with a big venture. >> Rafe: Ron Conway and Sequoia. >> Charlie: Ron Conway and Sequoia put out a note arguing that times are tough and probably weren't not gonna see a rebound any time soon, bottom line, hunker down. But in listening to talks given by both Williams and Zuckerburg you get the impression, at least for these folks, profitability in your term, it's not as important as other things. >> Rafe: They seem to be surprisingly happy about the direction their businesses are going and considering the input that everybody else is getting about hunkering and delaying expansion and all that stuff. Williams gave the talk about Twitter answering questions about where the money is. Well, ya know, we think the service is valuable and companies will pay for it but he was really light on specifics. Zuckerburg with Facebook was talking about international expansion, and Facebook has revenues, but again, it was more of a down -- >> Charlie: As well as a fed investment from Microsoft to tie them over. >> Rafe: Yeah >> Charlie: Did you get the impression that it was more of a question of these two, ya know, established, more established Web 2.0 companies talking about their specific niches rather than something that could be amplified for the Web 2.0 episystem at large. >> Rafe: I see younger CEO's, CEO's of younger companies being much more focused now on their path to revenues and to profitability. Companies that have traction that are the Xerox's, the household names of the Web 2.0 like Facebook and Twitter, they seem to be thinking that, ya know, they're okay, they can weather, they're hunkering isn't going to be as bad for them, that the advertisers will fly towards the audiences and that these companies have the audiences. But then again Jerry Yang [assumed spelling] of Yahoo gave a, I think a pretty poor showing at this event in trying to reassure people that Yahoo is on a track towards to turn around its fortunes and there was no sense that Yahoo is pulling out of the hole it's in right now, and they just -- they keep getting hit, ya know, Microsoft won't buy them and Microsoft said it again, they won't buy them. >> Charlie: At least not the price -- the current price of the stock. How much to make of this I don't know but the party scene, I attended a few parties last week and they were rockin' as if it were 1999. >> Rafe: Yeah, they -- I don't know why everybody is so happy. People are saying that, look this isn't our recession, this isn't the left coast tech recession it's the entire economy, we're just along for the ride, if it affects them it affects us so it's not really our fault. Maybe there's a sense, maybe like the last bubble, we didn't cause this one but it will affect us and it will affect the tech economy and I don't know why the tech people are so upbeat when we're going to see advertising take a hit, consumer spending take a hit, and all the services that support them, I mean everything's going to take a hit. I don't know why the misery isn't trickling down to the start-ups. >> Charlie: Optimism >> Rafe: I guess if you have to be, if you're an entrepreneur you have to be optimistic, you have to believe that you have a service that is better than everything else out there and that paying for everybody else means just that you can focus more on getting the audience that you need. >> Charlie: It's the other guy that's in trouble, it's an opportunity for us, thank. On behalf of CNET News I'm Charlie Cooper. ^E00:04:32

New releases

2015 Alfa Romeo 4C: Anatomy of a mini supercar (CNET On Cars, Episode 60)
18:39 February 27, 2015
Alfa's undistilled little 4C isn't quite like anything else on the market, a look at the little-known bible that rules all cars in...
Play video
2015 Mercedes-Benz GLA 250
4:07 February 27, 2015
Can Mercedes-Benz convince Americans its tri-star logo belongs on a compact SUV?
Play video
SousVant can sous vide très bien
2:22 February 27, 2015
A fancy cooker with a pleasingly simple appearance, the SousVant makes cooking to temp easy.
Play video
Apple Watch may open cars, says CEO Tim Cook
2:59 February 27, 2015
Tim Cook says he wants the Apple Watch to replace your key fob. Also, we dive into the core problem of #TheDress debate and bid farewell...
Play video
Anova cooks up a smarter sous vide starting point
1:52 February 27, 2015
Better (and cheaper) than the original, the second-gen Anova dials in on sous vide supremacy.
Play video
Best new games for March 2015
2:30 February 27, 2015
What are the hottest new video game releases for March 2015? Jeff Bakalar runs down the most aniticipated games on the Xbox, PlayStation...
Play video
Apple features we don't want in a car
2:45 February 27, 2015
The five worst features Apple will probably include in their rumored Apple Car.
Play video
Skullcandy Hesh 2 Wireless: A $100 over-ear Bluetooth headphone that sounds decent
1:15 February 27, 2015
Skullcandy's Hesh 2 may not be a great wireless headphone, but it's a reasonably good value at $100.
Play video