Monday, September 22, 2008
The Basic Laws of Old and New Media
byThe power of social networking – and why astute businesses need to learn to embrace it – is all in the math.
What governs the power of old media (broadcast or one-way communication) is Sarnoff’s Law. There is a proportional relationship. If a broadcast network doubles its viewers, it doubles its value.
What governs social networks is Metcalfe’s Law and Reed’s Law. These are exponential relationships. If a social network doubles its participants its value grows by the square of its increase.
Considering what companies and investors have been willing to pay for high-growth social networking start-ups, it appears Wall Street and Main Street believe in Metcalfe’s Law.
Found in
Social Networks •
(1) Comments
• Permalink
http://www.sundog.net/index.php/sunblog/entry/the-basic-laws-of-old-and-new-media/
Like this post? Subscribe to our RSS feed. 
