The technological advancements in the late twentieth and early twenty first centuries have given online media, in the first instance, an enormous advantage over other mediums such as the printing press, the radio and TV. To date, with the media technology transferring to the stage of a participative, interactive Web 2.0 platform, the causes and effects of this new media technology have aroused many researches and discussions in the field. Some take the new media technology as an extension of human beings, as a commercial product, or as a business model whereas others argue that it is another form of political force. This literature review attempts to gather the latest discussion on Web 2.0 in order to have a general idea of its nature, the influencing factors and the controlling forces. No definite answers are put forward. However, a better understanding of various effective factors positioned to the new media technology, be they societal, political or commercial, are critically demonstrated.