Last week I had the opportunity to meet NY-based developer and entrepreneur Greg Narain. Greg is a new father and he has created a new Web application based out of necessity. The application is called Lil'Grams and sits between Twitter, Pownce and Dogster. Greg is a new dad and son Aiden needed a memory book/journal but none of the current social media apps provided what he was looking for. I think of Lil'Grams as a digital replacement for the baby book, the 8mm tapes (that was in my day) and the ability to keep Gramma up-to-date on baby's progress. If interested, signup for the alpha on their main page.
Lil'Grams allows you to keep every aspect of your baby updated - from text snippits "he just burped" to video "baby's first walk" to height "damn, looks like those 2 cm's mean new clothing" to food "he really likes those orange pez" and a 1st category for everything baby does "first".
I think Lil'Grams has great potential and exporting select content will be a large benefit as well. Post a quick message on Lil'Grams, click transfer to Twitter and let everyone see what's going on. Same with YouTube, Flickr, etc. I could also see buying a domain name for your new baby and redirecting it to Lil'Grams.
This is a niche site and making sure there is a large enough market is critical. Greg notes below that 1.6 million first-time moms, but the market is larger than that. Moms with multiple children work as each baby will want a book. And the site seems simple enough that translation to other languages should be easy to implement which could provide an entirely new marketing opportunity for expansion.
One monetization strategy for Lil'Grams would be partnering with the team at Sharedbook - I would bet a great marriage could take place as SharedBook can provide the printed books for those who want an offline version for family members who aren't online.