It seems like another new story emerges about Web 2.0 nearly every day, but how much of the buzz is real and how much is hype? A new special issue of Technology Review takes a closer look at “the business of social networks.” The issue contains a number of interesting stories, including a listing of “ten start-ups to watch.” The articles note that social networking is the web’s fastest growing application, yet few firms are making money in the process---at least not yet. Even popular sites like Facebook and MySpace continue to lose money. The issue’s lead article, “Social Networking is Not a Business,” asks some hard questions about the industry’s future. It suggests that social networking sites might capture some of online advertising market but remains somewhat skeptical. In the end, it suggests that leading social networking sites might have a future that looks less like the next Google, and more like struggling or defunct early Internet firms like CompuServe, Netscape or AOL.

Access the July/August 2008 issue of Technology Review at www.technologyreview.com.