Media 2.0 Profitability

Scott Karp asks this question: What If Media 2.0 Is Less Profitable Than Media 1.0?

In a recent update to his theory, he comes to the conclusion that media companies will see less profit because of a:

“…deep structural problem that I’ve previously highlight: the loss of control. Web 2.0 works great as an ideology, but maybe not so great as the basis for a media economy. Less control = less profit.”

Andy Kessler backs him up, and includes a nifty drawing of a pipe to explain that control of this pipe is crucial for success.