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=Business Models=
=Business Models=


==Typology==
See: [[User-Generated Content - Business Models]]


"There are five basic models:
=Discussion=
 
i) voluntary contributions,
 
ii) charging viewers for services - pay-per-item or subscription models, including bundling
with existing subscriptions,
 
iii) advertising-based models,
 
iv) licensing of content and technology to third
parties, and
 
v) selling goods and services to the community (monetising the audience via online sales).
 
These models can also remunerate creators, either by sharing revenues or by direct payments from other
users."
 
 
Discussion [http://www.oecd.org/dataoecd/57/14/38393115.pdf]:
 
"At this stage there are essentially five approaches to monetise UCC, a combination of which are
illustrated by three concrete cases in Table 6 (see also VTT Technical Research Centre of Finland, 2007).
 
===Voluntary donations===
 
In a frequently utilised model, the user makes the content freely available, like that of a musician
performing on the street, but would solicit donations from users. Such models are currently in place on
many sites with a donate-button, often encouraging those accessing the content to donate to the creator
or the institutions (usually online by credit card or via PayPal). A significant number of blogs, wikis,
online video and online music creators ask for donations from their audience for activities such as web
hosting and site maintenance, or for the content as such. A common feature of certain non-commercial
UCC sites is that they manage to run their operations with quite limited funding (often only the time
invested by volunteers and users). Wikipedia, for instance, spent less than USD 750 000 in 2005 to sustain
its growth and it frequently draws on donations to finance these costs (beyond the donation of time and
expertise which are also donated by its users).40 Blogging and citizen journalism sites such as Global
Voices Online are supported by bloggers who commit their time but its operating expenses are funded by
grants from foundations or even news companies (such as Reuters in the case of Global Voices Online).
Such donations of time or money have been the cornerstone of Internet developments in areas such as the
open source movement (e.g. for the support of free Internet browsers) or other user-driven innovations on
the Internet. New voluntary payment models for the promotion of UCC content and platforms based on
reciprocity, peer-based reputation and recommendations have been proposed (Regner et al, 2006).
 
===Charging viewers for services===
 
Sites may charge those viewing UCC, whereas the posting of content is free. This can take the form of
a pay-per-item or a subscription model. The popularity of the UCC has to be high to be able to charge as
competing sites are free and as making small online payments and entering credit card information may be
too burdensome or impracticable.
 
Pay-per-item model: In that scenario, users make per-item (micro)-payments to UCC platforms or to
the creators themselves to access individual pieces of content. iSTockphot, for instance, offers
photographs, illustrations and stock video from its user-generated stock for USD 5 each. Platforms
exclusively hosting UCC or established digital content sale points (such as online music stores, video-onDSTI/
demand platforms, or online retailers), for instance, could offer UCC as part of their repertoire on pay-peritem
terms. The fact that no shelf space is needed to stock a variety of content facilitates this model.
Subscription model: This model would entail consumers paying to subscribe to services offering
UCC. Yet paying a subscription to access others content is rarely used as a model. Rather users pay a
subscription for enhanced hosting and other services for one's own content and access to others content.
 
One of these models involves two-tiered subscription services, whereby a user may opt for a basic
account free of charge that provides a set amount of services or for a pro account that users pay a
subscription or other fee for. The pro accounts provide enhanced features, more (or even unlimited)
hosting space, and other options that are attractive to the user.41 A new approach involves a hosting-based
model with a cooperative element, such as Lulu.tv. Users pay for the service provided by the site, but are
also remunerated on the basis of the popularity of their content (see later discussion on this point).
 
The bundling of UCC into existing subscriptions and associated payments may be an easier option.
Cable TV operators, Internet Service Providers (ISPs), digital radio services and other media outlets derive
most of their revenue through monthly subscription fees paid by the users (e.g. EUR 29.99 for a monthly
Internet triple play offer in France). To remain attractive to users, such operators could opt to carry UCC,
either by creating special channels exclusively devoted to UCC (such as the case with FreeTV in France)
or by airing a selection of UCC on the regular programs. In both cases, users pay for the UCC content via
their usual ISP or cable subscription.
 
 
===Advertising-based models===
 
(Monetising the audience via advertising)
 
Advertising is often seen as a more likely source of revenue surrounding UCC and a significant driver
for UCC. Models based on advertising enable users and hosts to preserve access that is free of charge to
the content while bringing in revenue. The economics of such a service are often compared to free web
mail where users get a free service, and owners of the service get to serve ads to this audience. Payment for
the advertising depends on numerous factors: number of users on UCC sites, related web site usage (dwell
time on site, depth of visit / page views per session / share of repeat visits), or clicks on the actual
advertisement banner leading the user to the webpage of the brand being advertised. Viable sustainable
business models are only likely to work with a large enough user base to attract enough advertisers and
actions by users generating revenue flows for the site.
 
Services that host UCC make use of advertising on the site (including banners, embedded video ads
and branded channels or pages) to generate revenue. The advertisements can be specific to an audience
most likely to be attracted by certain UCC platforms (often popular, young target groups) or to certain
content being watched by the user. When users search or watch a particular video, related advertising is
shown on the side bar, i.e. banners or short trailers start as the computer cursor moves across a banner.
 
Many UCC platforms such as Fanfiction.Net are relying on services to drive advertisement revenues
(e.g. Google AdSense, Microsoft, or the service provided by the UCC hosting site itself such as
FeedBurner Ad Network for blogs). Google AdSense automatically delivers text and image ads that are
targeted to the UCC site, the requested UCC content, the users geographic location and other factors (for
example, travel ads for China when searching for the keyword
China on a video site). When users click
on the ad, that advertisement service receives per-click revenues from the company being advertised. In
turn, it then pays the UCC site hosting its ads. Some UCC sites are also redistributing part of this
advertising money with those creating or owning the content. These models provide independent UCC
sites (some owned by individuals) with access to a large base of advertisers.
 
Advertising may also be placed within the content, such as within a video. Popular video podcasts
also incorporate advertisements where users can click to sites from within the video. Increasingly,
branded channels have been launched on UCC platforms where users can view content from a special
brand or media publisher. Virtual worlds like Calypso allow firms to create and display advertisements.
 
It is expected that sophisticated targeting techniques will increasingly enable advertisers to create
targeted ad messages, rather than the interruptive spots used by most sites. The quality of the targeted
nature of the advertisement will depend on how well videos or UCC is paired with relevant advertisements.
Currently, advertisements are often displayed on the basis of tags and keywords which uploaders create.
These may be more or less reliable with some users not creating keywords or using misleading ones to
attract more traffic.
 
UCC platforms have already received substantial up-front revenues from third players wanting to
advertise to this community. In August 2006, Google agreed to deliver at least USD 900 million in ad
revenue over three and a half years to News Corp. for the right to broker advertising that appears on
MySpace and some other sites (van Duyn and Waters, 2006). Microsoft Corp. also recently agreed to be
the exclusive provider of advertising to Facebook (Sandoval, 2006a).
 
Although most of the hopes to monetise UCC are currently being placed on purely advertising-related
business models, it will take time to show whether these models will work (c.f. also VTT Technical
Research Centre of Finland, 2007 which argues that social media cannot fully flourish on ad-based
models). Advertisers are concerned that the user audience may have grown accustomed to free content and
will migrate to ad-free sites. Also some advertisers are concerned to be randomly associated with UCC
they cannot control or foresee (e.g. a car advertisement being shown before a UCC video about a car
accident or other inappropriate content).
 
 
===Licensing of content and technology to third parties===
 
Increasingly UCC is being considered for airing on other channels and this act of licensing content to
third parties (e.g. television stations) may be a source of revenue. As elaborated later, according to most
terms of services of UCC sites, users agree that they have given the site a licence to use the content without
payment, sometimes reserving the right to commercially exploit the work.44 Sometimes this may include
the right of the UCC site to licence the content to third parties but a revenue sharing model between
content creators and UCC site may apply. Increasingly deals to licence content to third parties or to
cooperate with third parties to share the content involve mobile carriers (e.g. the recent Verizon and
YouTube Watch on Mobile service)
Finally, UCC platforms can enter into commercial agreements with third parties to provide their
technology to the latter (e.g. DailyMotion entering a commercial agreement with the French ISP Neuf
Telecom to provide its video sharing service technology). Some UCC platforms (e.g. On2 Flix) are more
back-end service providers to facilitate the process of UCC video services of third parties.
 
 
 
===Selling goods and services to community===  
 
(Monetising the audience via online sales)
 
 
Another option is to capitalise on the large, captive user base and market own or third party products
to users. Due to the network effects, successful UCC sites are likely to have a large user base. This large
audience can be monetised with UCC sites selling items or services directly to their users. Similarly to the
above examples in the pay-per-item or the subscription section, blogging, photo sharing and other sites
may sell particular one-off or continued services to their users. But UCC platforms such as virtual worlds
or social networking services also allow them to sell the use of online games, avatars, virtual accessories or
even virtual land to their users. Korean social networking site CyWorld, for instance, receives considerable
revenues from the sale of digital items such as decorations for a user profile or furniture for ones virtual
miniroom. Users use Acorns as currency in the CyWorld Shop purchased via credit card.
 
UCC sites can also cooperate with third parties to monetise their audience via allowing the latter to
sell directly to their users while taking a share of the revenue. For instance, the Mypurchase service of
MySpace will provide the interface for creators to sell their music, taking a portion of sales revenues in
exchange. The popular Japanese social networking site Mixi has several approaches, one of which is to
allow users to rate and review books CDs, DVDs, games, electronics and other items and linking users
directly to Amazon Japan with one click to purchase those items (calling this social commerce) or to
listen to music which can later be bought over iTunes.


UCC platforms could also allow for transactions amongst its users while taking a share of the revenue.
==The [[Digital Divide in User-Generated Content]]==
Depending on the terms of service, other business models may involve the selling of anonymised
information about users and their tastes and behaviour to market research and other firms."
(http://www.oecd.org/dataoecd/57/14/38393115.pdf)


Mark Graham:


==Economic Impact==
"Profound digital divisions of labour are evident in all open platforms that rely on user-generated content.


"The shift to Internet-based media is only beginning to affect content publishers and broadcasters. At
On Flickr, countries in the north are covered by much thicker clouds of information. Google's databases contain more indexed user-generated content about the Tokyo metropolitan region than the entire continent of Africa. While on Wikipedia, there is more written about Germany than South America and Africa combined. In other words, there are massive inequalities that cannot simply be explained by uneven internet penetration rates. A range of other physical, social, political and economic barriers reinforce the digital divide, amplifying the informational power of the already powerful and visible.
the outset, UCC may have been seen as competition as:


i) users may create and watch UCC at the expense
That's not to say the internet doesn't have important implications for the developing world. People use it not just to connect with friends and family, but to learn, share information, trade, and represent their communities.
of traditional media, reducing advertising revenues,  


ii) users become more selective in their media
Consequently, it's important to be aware of the internet's highly uneven geographies of information. These inequalities matter to the south, because connectivity – though a clear prerequisite for access to most 21st-century platforms of knowledge sharing – is by no means a determinant of knowledge production and digital participation.
consumption (especially younger age groups),  


iii) some UCC platforms host unauthorised content from media publishers.  
How do we move towards encouraging participation from and about parts of the world left out of virtual representations? The first step is allowing people to see what is, and isn't, represented. After that, there is also a clear need for plans like Kenya's strategy to boost local digital content, or Wikimedia's Arabic Catalyst project, which aims to encourage the creation of content in Arabic and provide information about the Middle East.


However, some traditional media organisations have shifted from creating on-line
It remains to be seen how effective such strategies will be in changing the highly uneven digital division of labour. As we rely increasingly on user-generated platforms, there is a real possibility that we will see the widening of divides between digital cores and peripheries. It is crucial to keep asking where visibility, voice and power reside in an increasingly networked world."
content to creating the facilities and frameworks for UCC creators to publish. They have also been making
(http://www.guardian.co.uk/global-development/poverty-matters/2012/jan/09/networked-world-geography-of-information-uneven)
their websites and services more interactive through user comment and ratings and content diffusion. TV
companies are also licensing content and extending on-air programs and brands to UCC platforms.
There are also potentially growing impacts of UCC on independent or syndicated content producers.
Professional photographers, graphic designers, free-lance journalists and similar professional categories
providing pictures, news videos, articles or other content have started to face competition from freely
provided amateur-created content."
(http://www.oecd.org/dataoecd/57/14/38393115.pdf)
 
 
==Monetisation of user-created content and new business models==
 
"Commercial entities, including media companies, are playing an increasing role in supporting,
searching, aggregating, filtering, hosting, and diffusing UCC. Direct revenue generation from this
phenomenon for the creators of the content or for established commercial entities (e.g. media companies,
platforms hosting UCC) are only starting to emerge. Until recently, sites hosting UCC were essentially
non-commercial ventures of enthusiasts or start-ups with little or no revenues but with increasing finance
from venture capitalists. These sites often did not have business plans showing how revenues or profits
would be produced, some losing significant money day-on-day due to the high bandwidth costs. Rather
their objective was to increase the user-base by appealing to ever-greater audiences and users, potentially
with an eye to selling their business or starting to implement business models at a later stage.
Yet when projects reach a certain size considerable financial resources are necessary for the
technology, bandwidth and organisation to keep it going. Also, given that many UCC platforms host
unauthorised content from third parties, they face challenges with respect to remunerating the content
originators.
 
UCC sites are also increasingly subject to business and investor interests. Mixi, the Japanese SNS site,
for instance, and Open BC/Xing, a German business SNS site, have been listed on stock exchanges.
Moreover, established media conglomerates but also Internet-based companies have been increasingly
interested in deriving revenues from UCC sites. Firms such as News Corp, Google, Sony and Yahoo have
invested significant amounts of money to buy UCC sites."
 
(http://www.oecd.org/dataoecd/57/14/38393115.pdf)
 
=Discussion=


==a critique of the concept of User==
==a critique of the concept of User==

Latest revision as of 06:11, 22 January 2012

Refers to the increasingly widespread capability for "users" to generate and share their own content, using collaborative publishing platforms like You Tube, rather than consume production from the mass media.

It is used mostly in the field of media, while Crowdsourcing is used as a specific strategy to create innovation and value in commercial projects.

See the related entry on the User-Generated Ecosystem

Critics suggest the whole concept has a corporate bias and propose the alternative of Community-Curated Works

Definition

1.

"In this study UCC is defined as

i) content made publicly available over the Internet,

ii) which reflects a certain amount of creative effort, and

iii) which is created outside of professional routines and practices." (http://www.oecd.org/dataoecd/57/14/38393115.pdf)


Description

"In the UCC value chain, content is directly created and posted for or on UCC platforms using devices (e.g. digital cameras), software (video editing tools), UCC platforms and an Internet access provider. There are many active creators and a large supply of content that can engage viewers, although of potentially lower or more diverse quality. Users are also inspired by, and build on, existing works as in the traditional media chain. Users select what does and does not work, for example, through recommending and rating, possibly leading to recognition of creators who would not be selected by traditional media publishers." (http://www.oecd.org/dataoecd/57/14/38393115.pdf)


Business Models

See: User-Generated Content - Business Models

Discussion

The Digital Divide in User-Generated Content

Mark Graham:

"Profound digital divisions of labour are evident in all open platforms that rely on user-generated content.

On Flickr, countries in the north are covered by much thicker clouds of information. Google's databases contain more indexed user-generated content about the Tokyo metropolitan region than the entire continent of Africa. While on Wikipedia, there is more written about Germany than South America and Africa combined. In other words, there are massive inequalities that cannot simply be explained by uneven internet penetration rates. A range of other physical, social, political and economic barriers reinforce the digital divide, amplifying the informational power of the already powerful and visible.

That's not to say the internet doesn't have important implications for the developing world. People use it not just to connect with friends and family, but to learn, share information, trade, and represent their communities.

Consequently, it's important to be aware of the internet's highly uneven geographies of information. These inequalities matter to the south, because connectivity – though a clear prerequisite for access to most 21st-century platforms of knowledge sharing – is by no means a determinant of knowledge production and digital participation.

How do we move towards encouraging participation from and about parts of the world left out of virtual representations? The first step is allowing people to see what is, and isn't, represented. After that, there is also a clear need for plans like Kenya's strategy to boost local digital content, or Wikimedia's Arabic Catalyst project, which aims to encourage the creation of content in Arabic and provide information about the Middle East.

It remains to be seen how effective such strategies will be in changing the highly uneven digital division of labour. As we rely increasingly on user-generated platforms, there is a real possibility that we will see the widening of divides between digital cores and peripheries. It is crucial to keep asking where visibility, voice and power reside in an increasingly networked world." (http://www.guardian.co.uk/global-development/poverty-matters/2012/jan/09/networked-world-geography-of-information-uneven)

a critique of the concept of User

1.

By Scott Carp at http://www.blogherald.com/2006/12/27/death-of-the-user/

"In most cases “users” in Media 2.0 are defined as the “people formerly known as the audience” or the “users” of Web 2.0 applications, including social networking sites like MySpace. The problem is that “users” are defined in opposition to “publishers” — as if people who create “blogs” are still in some lesser, “other” category, below and apart from traditional publishers like, uh, Yahoo.

Well, no. There is a revolution in media because people who create blogs and MySpace pages ARE publishers, and more importantly, they are now on equal footing with the “big,” “traditional” publishers. There has been a leveling of the playing field that renders largely meaningless the distinction between “users” and “publishers” — we’re all publishers now, and we’re all competing for the finite pie of attention. The problem is that the discourse on trends in online media still clings to the language of “us” and “them,” when it is all about the breakdown of that distinction.

Despite my objection to his use of “users,” Fred’s observation about trends in page views is an important one — smaller publishers, i.e. NOT USERS, do likely account for an increasing percentage of all page views. But I think it’s essential to recognize that the difference here is one of SCALE, not KIND. Traditional publishers who use cumbersome, out-dated multi-million dollar content management systems to publish on the web are also “users” of these over-priced systems, but they are publishers first.

It’s time we start adjusting our taxonomy to recognize that the tools do not define the activity or the output or the people doing it. There are large publishers and small publishers. There are people who publish for friends and family, and people who publish for professional colleagues, and people who publish for a (relatively) broad consumer audience. The revolution is that ANYONE can publish to the network and that anyone can leverage the power of the network.

That said, there is one respect in which some publishers are still “users” — when you publish to a platform like MySpace or YouTube, you cede control over the monetization of your publication. As I discussed in my last column, making money is certainly not the objective of everyone who publishes online. But regardless of financial motives, we are all seeking our share of attention — and anyone who publishes anything online is competing for their share.

So it’s time to throw off the mantle of “user” and be proud publishers — otherwise we’re going to get “used.”


2.

User:

“Treat me as a person, not some user, consumer, addict, shallow person defined by your brand or some other form of low life.” — Rishad Tobaccowala

The problem is that the discourse on trends in online media still clings to the language of “us” publishers and “them,” users when it is all about the breakdown of that distinction.

— Death of the User

“User” is software-speak from a block diagram. I’m not just someone who you let create an account on your website." (http://brianna.modernthings.org/article/123/an-alternative-term-for-user-generated-content)


3.

"Using ‘content’ as a noun to describe written and other works of authorship is worth avoiding. That usage adopts a specific attitude towards those works: that they are an interchangeable commodity whose purpose is to fill a box and make money. In effect, it treats the works themselves with disrespect."

— Richard Stallman [1]

Ten Conditions for successfull UGC

From the OhMyNews CEO at http://english.ohmynews.com/ArticleView/article_view.asp?menu=&no=347268&rel_no=1&back_url= :


"Credibility

To deliver correct and non-manipulated facts. Reporters should possess clear motives on contents before the audience.

To be free from copy-right infringements. Contents must be produced by reporters by themselves and not copied from somewhere else without permission.


Responsibility

To create contents with considerations on the needs of the audience and news sources and not only based on the own needs of reporters.

To contribute to improving the quality of the media, which reporters work with, by taking account of the nature of the media (platforms).


Influence

To produce contents recommendable to others. Stories should be worthwhile sharing with others rather than personal diaries.

To ensure the attention of the critical mass who are able to build public opinions. The media (platforms) should become supporters in securing a good number of the audience for valuable contents.

To make repercussions not only in the cyber world but also in real life.

To generate positive impact on the public spheres. Contents helping to resolve issues would be more desirable than simple criticism and raising issues only.


Sustainability

To win recognitions as useful contents among the audience and utilize the recognitions as a foundation for sustainable production of contents.

More desirably, to become marketable and contribute to establishing good and sound business models for the media." (http://english.ohmynews.com/ArticleView/article_view.asp?menu=&no=347268&rel_no=1&back_url=)


Insufficiency of the business model

Yihong-Ding:

""Networking" is not the same as "consuming," however. A common misconception of Web 2.0 is that people produce UGC for others to consume. By contrast, UGC is a medium that introduces the content producer to the public -- i.e, "This guy often produces something interesting/illuminating/fascinating; therefore, we should follow/link/become friends with him."

The primary motive behind creating content is not for consuming, but to gain an impression from the public or a niche community for the end-purpose of networking. The UGC contributors on today's Web generally gain nothing except attention. Content is not king, attention is. This is the secret to a successful Web 2.0 business and is why some such businesses succeed and others fail.

In turn, then, a successful Web 2.0 business is not the one that works hard to improve the efficiency of UGC consumption. By contrast, it is the one that leverages the opportunity for successful interpersonal networking.

But this type of attention-first, content-second, UGC-grounded Web-2.0 business model is unlikely to sustain through the Web's evolution. The critical argument against such a model is it doesn't produce enough value. Attention's value is shallow because it is a secondary productive force that helps to produce capital but doesn't produce capital itself. The greatest contribution of Web 2.0 is that it liberates humans from geographic restrictions. Its limitation, however, is that Web 2.0 does not provide ways for the liberated Web users to produce exchangeable commercial value. Web 2.0 itself cannot overcome this limitation. To resolve it, we look forward to the next evolutionary stage of the Web." (http://www.internetevolution.com/author.asp?section_id=542&doc_id=171590&)


Legal issues

From the Wikipedia:

"Liability Of Websites That Allow UGC: Websites are generally immune under U.S. law from liability if user generated content is defamatory, deceptive or otherwise harmful. The website is immune even if it knows that the third-party content is harmful and refuses to take it down. An exception to this general rule may exist if a website promises to take down the content and then fails to do so.[9]

Copyright Dilemma: Imagine a video of you having fun with your friends in the popular rhythms of Michael Jackson or Madonna, for instance. A good example of possible copyright infringement occurs when people post such material into online services like YouTube for everyone to see. Therefore, UGC can consist of partly or completely copyright protected material and it can be distributed online without a permission from the original right holder.

Internet Service Providers Liability: In the context of third party copyright violations, it is important to consider the liability issues between the content provider and the Internet service provider (ISP). In the legal literacy scholars[10] have established two distinct models of liability as regards to ISP. These can be divided into "publishing information doctrine" and "storing information doctrine". According to the former view, ISP controls or at least has the ability to control the content published by using their services. In other words, ISP acts as a host and has the editorial control to take down and monitor content posted online. In order to establish secondary liability it is pivotal to evaluate the level of control practiced by the ISP. The latter view, on the other hand, applies to situations in where ISP acts as a mere host provider lacking any editorial role to the content posted online. Even though ISP might have awareness of the content run by using their services, it has no possibility to monitor or modify information.

In general, there are some differences in legislation between the US approach on ISP liability and the EU approach. In the US, the ISP liability is regulated under the DMCA which deals only with copyright issues. Section 512 stipulates so-called Safe Harbor provisions under which ISP can in certain detailed conditions escape liability. For example, ISP's are required to adopt a special take down policy,[11] which allows individuals to respond to alleged copyright violations. The EU approach is horizontal[12] by nature which means that civil and criminal liability issues are addressed under the Directive 2000/31/EC of the E-Commerce. Sections 4 deals with liability of the ISP while conducting "mere conduit" services, caching and web hosting services.[13]

Content Providers Liability: The question of direct liability of the content provider might arise when uploading and downloading material in the Internet. Prior to UGC, direct liability issues have been tackled in so-called file sharing cases.[14] This technology, much like in UGC, allows unauthorized reproduction and dissemination of information and the fundamental question of liability is determined according to copyright exceptions.

Copyright Exceptions: In certain cases use of copyright protected material can be allowed without a permission from the original right holder. In the US, the notion of fair use doctrine is used to determine whether the use of copyright protected material is allowed or not.

Within this assessment the courts must focus on following list of non-exhaustive factors:

  • The purpose and character of the use, including whether such use is of commercial nature or is for nonprofit educational purposes;
  • The nature of the copyrighted work;
  • The amount and substantiality of the portion used in relation to the copyrighted work as a whole; and
  • The effect of the use upon the potential market for or value of the copyrighted work.

In the EU level, the possibility to allow copyright exceptions is tackled by the article 5 of the so-called Copyright Directive, also known as the Information Society Directive. Article 5 of the Copyright Directive stipulates an exhaustive list of optional defenses which are subjected to the classical Berne three-step test. The list of optional defenses is conditional to members states implementation but these include use of copyright protected material for private use, education purposes, quotations and parody among others.

In general, unauthorized use of copyright protected material in the context of UGC might be allowed if it falls under the fair use doctrine or can be justified according to the list set out in the Copyright Directive. The fundamental difference between the US and the EU system is the more lenient case-by-case assessment practiced by US courts in relation to a more rigid system in the EU level." (http://en.wikipedia.org/wiki/User-generated_content)


The issue of measurement

OECD:

"Measuring UCC is not straightforward. Several factors complicate such measurement: the decentralised nature of UCC production, the fact that the same UCC content is sometimes accessible on a variety of sites (problem of double-counting), the fact that not all registered users of UCC platforms are actually active users (inactive accounts), the problem of users setting up multiple accounts at the same site (problem counting unique users) and the sometimes difficult distinction between user-created and other content (such as the uploading of clips from copyrighted television shows). The first two factors may lead UCC platforms to overstate the figures about their active unique users. Currently also little official data from National Statistical Offices (NSO) are obtainable concerning the number of users creating content, the amount of such content that exists, the number of users accessing such content and the patterns that are emerging from such creation. NSOs have only started to include such questions in surveys (e.g. the European Union, Japan, Korea, Canada). It may take some time before official national data is available for all OECD countries in an internationally comparable way. Existing data however show that broadband Internet users produce and share content at a high rate and do not merely consume it. All data sources point to large intergenerational differences in web media usage and to considerable gender differences.

Data available from national statistical surveys and the OECD show that the typical online behaviour of Internet users consists of the following activities: mainly search, consulting general interest and portals, using Internet tools and Web services such as email, e-commerce, using sites from software manufacturers, consulting classifieds and participating in auctions, using broadcast media, and financial services (OECD, 2004a; OECD, 2005a).

When data is available on content creation, however, this is shown to be a very popular activity among young age groups. As shown for the European Union in Figure 1, posting messages to chat rooms, newsgroups or forums, using peer-to-peer file sharing sites and creating a webpage the closest yet sometimes imperfect statistical proxies on offer for UCC - are already very popular among Internet users. In countries such as Finland, Norway, Iceland, Portugal, Luxembourg, Hungary and Poland, in 2005 around one third of all Internet users aged 16-74 were engaged in these activities. One-fifth of all Internet users in some OECD countries report having created a webpage. Younger age groups are more active Internet content creators. In countries such as Hungary, Denmark, Iceland, Finland, Norway, Germany, Poland and Luxembourg (in increasing order), in 2005 between 60 and 70% of Internet users aged 16-24 have posted messages to chat rooms, newsgroups or forums. One-fourth but sometimes half of all Internet users in some OECD countries in that age group have created a webpage. In France, about 37% of teenagers have created a blog.8 In 2005, 13% of Europeans were regularly contributing to blogs and another 12% were downloading podcasts at least once a month (European Commission, 2006)." (http://www.oecd.org/dataoecd/57/14/38393115.pdf)

More Information

  1. Wikipedia article at http://en.wikipedia.org/wiki/User-generated_content
  2. Overview of 2006 UGC developments in the Guardian, at http://www.guardian.co.uk/weekend/page/0,,1939196,00.html
  3. John Batelle introduces the different logic of packaged media vs. conversational media, at http://battellemedia.com/archives/003160.php
  4. See the related concept of Crowdsourcing
  5. OECD Study on the Participative Web and User Generated Content [2]