Friday, May 4, 2007

Digg's Heroics

Digg users are its value. Its actual technology and website can easily be cloned (as seen in open source versions like pligg) and is already duplicated by big sites like Netscape. This is all stating the obvious and proven.

So when Digg comes out and says they are “behind their users”, be skeptical. The truth about Digg is they are always behind their users because that’s the only position they can be in. If they alienate the Digg population, all the users will move to the next social news website.

When the Digg population banded against Digg, the management took a calculated risk. They decided to “spin” the chaos to their advantage with Kevin Rose’s post, knowing that they could be sued. They probably consulted their lawyers as to the probability of actually being sued as well as the likelihood of success. All pointed to minimal risk.

Then Kevin Rose heroically rises to say, Digg is behind you. He is really saying, “Our valuation drops to 0 if we aren’t behind you, and risk is low in getting behind you.” Digg is not an altruistic company – they would sell their user base instantly if the price was right.

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