An interesting article at C/Net, asks the question on whether Digg is undergoing a rebellion by its original members and users. A more important question is whether it matters or not. Digg seems to be saying it doesn't.
This brings us back to the idea of niche versus general websites. Digg has evidently decided to reach out to a more mainstream audience; causing consternation among its core users, but growing its potential to make money.
What's really happening here, is the same thing that is happening across the Internet. Original users of YouTube (GOOG) had no interest in advertising being included with their videos, but that hasn't stopped them from being included with their viewing experience.
The reason why is simply practical. Growing costs demand that you either find a way to monetize your existing core user, or grow the base by exanding beyond the original niche.
In the case of Digg and its founders, they've probably been told by potential suitors that they didn't have enough scale to warrant buying them. The change in focus by Digg shows they're attempting to grow larger from their desire to cash out of the company. They've obviously decided that scale is the means to that end. That's another way of saying they're looking to a large company to be bought out from.
Expectations that successful sites on the Internet were going to somehow be continually offered free of advertising was an illusion at best. Even deep-pocketed companies must face the reality of not only paying their costs of doing business, but making a profit as well.
This doesn't mean of course that migrating to a more general audience is always the way to go. On the contrary, in many cases that can be a big mistake.
The question is no longer whether a website should be monetized, but in the case of ads, it's now a matter of how much.
To me, the point is we can't listen to wishful thinking - no matter how good it sounds - as it relates to putting up content on the Internet. Nothing will ever change as far as costs go and making a profit. The changes in Digg simply confirm this.
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