Rick Segal Explains B5 Backing
Posted on October 18, 2006
Filed Under Insights |
I sat down yesterday with Rick Segal and Shel Israel to discuss the future of content. One of the many topics: B5. I’ll come back later to the discussion I had with Shel.
Rick’s view is that the web as it now stands allows people to go back to a more trible form of congregation. Instead of being stuck with geography for affiliations we can use interests and passions (a point Shel also makes).
Rick is a recent B5 investor, so what’s the attraction? Three things says Rick.
This is my summary:
1. The basic business of a blogging network is no different from the business of a media conglomerate. The infrastructure of specialty magazines that a media empire has is there in a blogging network. It’s the same business model.
2. It’s possible that a network like B5 could quickly attract a bigger investment in, which might be the exit point for Rick. But in the meantime he has had access to the B5 network to understand the new media landscape from the inside. So when a Time Warner has its near death financial experience it will go looking for the B5s and by then Rick’s company will be geed up for their next move. Thanks to being in B5.
3. Ultimately the demand for content, and the diversity of interests, means it’s possible to make transformations to the industry - if for example a great blogger in the Philippines can make $100 a month from B5 that is a transformative experience for that blogger but also introduces new economics to the industry.
3 reasons for a step-ahead VC to back blogging.
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