There is truth to that. And maybe there are a thousand variations of telling the story best. With social media, you have the long tail effect.
Applying the concept to your content or stories - given a large enough availability of choice - for example the content of a blog - a large population of customers - virtually everyone online who is conducting a search - and negligible stocking and distribution costs (online) - social network mechanisms engage to help spread your content. That is if the content appeals and is useful to someone.
I searched for my blog's name the other day and found a wealth of information that supports this idea. Wikis, discussion boards, comments to posts, aggregation sites, not unlike FriendFeed, where people had referred to my content and built upon it. That is good feedback - actually great feedback. This is where the content becomes used and worked upon through participation and discussion by people who know people who I do not know - without me watching or "managing" it.
The person who tells the story or version of the story best wins. With social media, it's possible to have many winners.