Web 2.0 allows for more interactive sharing of information compared to Web 1.0 through features like social media, user-generated content, and easier categorization and finding of data. Multimedia integrates different media types like audio, video, images and text. Web 2.0 and multimedia can benefit each other, with multimedia providing better descriptions through tags and annotations on Web 2.0 platforms, and Web 2.0 allowing for better participation and communication around multimedia. Popular multimedia sharing sites like YouTube, Flickr, and others face challenges in managing copyright, bandwidth costs, and monetizing through ads and subscriptions.