What Started The Downfall of Digg
shoemoney.com
shoemoney.com
My take is that Digg's downfall (if it happens :-) was sealed long ago by Kevin Rose's personality. One only has to watch Diggnation with their stupid drinking antics and Beavis and Butthead humor to know that the audience Digg was courting was pretty low brow.
Then, suddenly, Digg tried to extend outside tech news and be a general purpose new site. Big mistake since low brow doesn't mix with Science, World News, etc.
The only positive thing I can say for Digg is that at least the comments there aren't as bad as on YouTube.
Or maybe I'm just bitter because I got banned from Digg and publicly branded a 'spammer' by a Digg employee.
If you replace the word 'users' with the words 'TV news' you also have a true statement.
It's a general problem with all things consumed in mass. The lowest common denominator is pretty low.
This is the second post I've seen where they value each user at $77 Dlls, which is exorbitant based on click through monetization, simply look at a how much Google is really willing to pay for an actual user having Google as their home page and monetizing their searches, which is likely more profitable to them than content.
I'll give you the Firefox/Google Toolbar signup with numbers, via AdSense they pay out from $1 dollar to .10 cents for each user you sign-up for Firefox with the Google Toolbar -- the range depends on the country the user is in, with $1 dollar going to north america and .10 cents to the lower bracket countries, those which I assume have less advertisers.
With this model Google ensures that each time a user opens Firefox and makes a search they will exposed to their ads, even considering a huge premium on the signup, its a long-way from actually paying $1 dollar for every user to $77 dollars.
If Google's 'user value' is any indicator, then at this rate Digg would be worth something around $3,896,103, assuming the user count is accurate, all users are located in North America and they don't apply some type of discount rate for not being able to make Digg a user's default home page.