This is a bit of sad news, but an illuminating bit of research on the increasing consolidation of web traffic on a few top websites:
Last week I was following the De-Portalization of the Internet thread, started by Fred Wilson and then extended by Keith Teare. I was struck by one observation in particular by Fred:
"I don't have the data to prove it, but my guess is if you looked at the percent of all pageviews that are generated each month, a much smaller portion exist on the top 10 properties today than in 2000, at the height of the first Internet era."
Essentially Fred's theory is that the Long Tail of Internet content makes up a higher percentage of total Web page views today, than 6 years ago.
I asked Web Analytics firm Compete if they could come up with some data to prove or disprove Fred's hypothesis. Compete kindly provided me with some great data, which in a nutshell disproves Fred's theory. According to Compete's data, the top 10 domains are not shrinking - but proportionally increasing.