It?s Not A Bubble, It?s Valleywood

There is a certain type of company that can only exist in Silicon Valley. People outside of the Valley scratch their heads at how a company with no revenue and no apparent business model can be called successful, much less be worth $1 billion. But maybe the problem is that we?re mis-categorizing Internet and mobile products as businesses in the first place. What if we looked at them as TV shows instead ? where success and failure is determined by ratings not revenue? Isn?t Instagram closer to American Idol than it is to Oracle? It entertains millions of us for a few minutes every day ? maybe that?s enough. Perhaps the Valley is pioneering a new business model, one where revenue isn?t the goal but where distribution and engagement are paramount.

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