The purchase of iPhone app Instagram for $1 Billion by Facebook was astonishing, but it focused people on what is fast becoming Web 3.0, which is a world in which people put stuff into the system as much as they observe, read or watch it.
Clearly the valuation of Instagram at $! billion has caused a rush to video, which is the next logical step after stills. The holy grail here is an app that allows people to shoot video, edit simpliy and upload directly to social networks. In other words do for video what Instagram did for stills.
The recent valuation of Viddy at $340 million makes clear the rush is on.
Is this a bubble?
I think yes and no.
I think it is a bubble in that most of the video based apps for iPhones don't allow the user to do a whole hell of a lot besides add funny graphics or make them look like old 8mm movies. This will get very boring very fast.
I think not because I think both iPhones and video are intrinsic to Web 3.0
In a little seen, but I think very important bit of information, The BBC has announced that it believes that the 'One Percent Rule' is now dead.
(How many people actually read The BBC's internal blogs?)
The One Percent Rule, which The BBC, and most other major media companies lived by essentially said that 1% of the population created content online, 9% interacted with it, and the remaining 90% were passive observers.
The BBC now believes that an astonishing 77% of the population creates content, while only 23% are now passive viewers.
This is big news.
Of course, with 56 billion videos uploaded to YouTube, either the 1% was incredibly busy or this is not exactly breaking news.
But it does signify a shift.
Which brings us back to Instagram and the next video app big thing.
If web 1.0 was about people watching or reading things, (like newspapers online), and 2.0 was about social networks then 3.0 is about people putting things into the mix. And if they're going to put things into the mix it is most likely that they are going to do this from their phones - with 6 billion already out there. And if they're going to do it in video (which is the most powerful and attractive medium we have), then they're going to need a simple and easy tool to do that with.
Hence, the rush for the next big app.
And you can bet that whoever makes it is going to find it worth a lot more than Instagram.