10:29 a.m. PT: The key to success in any business is tapping into an untapped or under-served market. Hip hop “mogul” Russell Simmons, reportedly worth $340 million, is trying to capitalize on a growing segment of rap-loving, broadband-equipped black and hispanic web surfers. (Source)
As broadband Internet (now the standard in the digital age) becomes less expensive, more people of lesser means can afford it. In order to produce clear, high quality images and sounds, content-rich audio and video files require wider and faster bandwidth. The wider the bandwidth signal, the more information the signal can carry.
According to a new study by the Pew Internet & American Life Project, the digital divide between blacks and whites is narrowing as more blacks acquire high speed Internet connections. From Businessweek:
The emphasis on high-bandwidth content reflects the changing profile of the U.S. Internet audience. Nearly 50% of Americans now have high-speed home access, says Susannah Fox, associate director at Pew, up from 47% in June. Fueling that increase is the fast adoption of broadband by African Americans, 40% of whom have high-speed connections at home, and Latinos, who are more likely to have high-speed access than a dial-up connection. Of the 29% of Hispanic adults who have an Internet connection, 66% opt for broadband. People living in urban communities are now even slightly more likely than suburban residents to be online. “African Americans are very often skipping the dial-up step and going straight to broadband,” says Fox. “And Latinos, though less likely to be online in the first place, are just as likely to be on broadband once they are on there.”
Entrepreneurs like Simmons are creating niche social networking sites that target the growing broadband-equipped “urban youth” market. Ultimately, the only color that matters in business is GREEN. MC Hammer’s created a YouTube-like site called DanceJam, and one of its backers is Michael Arrington, of all people. Arrington, a popular white tech blogger, may or may not be a fan of hip hop or MC Hammer-style dancing, but that hardly matters, does it? The important thing is whether DanceJam will attract users and advertisers.
Give online surfers (black, white, green, or purple) what they want, keep them coming back for more, and watch the advertising revenue pour in.
And everybody’s happy. 
