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| =Business Models= | | =Business Models= |
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| ==Typology==
| | See: [[User-Generted Content - Business Models]] |
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| "There are five basic models:
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| i) voluntary contributions,
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| ii) charging viewers for services - pay-per-item or subscription models, including bundling
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| with existing subscriptions,
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| iii) advertising-based models,
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| iv) licensing of content and technology to third
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| parties, and
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| v) selling goods and services to the community (monetising the audience via online sales).
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| These models can also remunerate creators, either by sharing revenues or by direct payments from other
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| users."
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| Discussion [http://www.oecd.org/dataoecd/57/14/38393115.pdf]:
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| "At this stage there are essentially five approaches to monetise UCC, a combination of which are
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| illustrated by three concrete cases in Table 6 (see also VTT Technical Research Centre of Finland, 2007).
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| ===Voluntary donations===
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| In a frequently utilised model, the user makes the content freely available, like that of a musician
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| performing on the street, but would solicit donations from users. Such models are currently in place on
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| many sites with a donate-button, often encouraging those accessing the content to donate to the creator
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| or the institutions (usually online by credit card or via PayPal). A significant number of blogs, wikis,
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| online video and online music creators ask for donations from their audience for activities such as web
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| hosting and site maintenance, or for the content as such. A common feature of certain non-commercial
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| UCC sites is that they manage to run their operations with quite limited funding (often only the time
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| invested by volunteers and users). Wikipedia, for instance, spent less than USD 750 000 in 2005 to sustain
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| its growth and it frequently draws on donations to finance these costs (beyond the donation of time and
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| expertise which are also donated by its users).40 Blogging and citizen journalism sites such as Global
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| Voices Online are supported by bloggers who commit their time but its operating expenses are funded by
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| grants from foundations or even news companies (such as Reuters in the case of Global Voices Online).
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| Such donations of time or money have been the cornerstone of Internet developments in areas such as the
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| open source movement (e.g. for the support of free Internet browsers) or other user-driven innovations on
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| the Internet. New voluntary payment models for the promotion of UCC content and platforms based on
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| reciprocity, peer-based reputation and recommendations have been proposed (Regner et al, 2006).
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| ===Charging viewers for services===
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| Sites may charge those viewing UCC, whereas the posting of content is free. This can take the form of
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| a pay-per-item or a subscription model. The popularity of the UCC has to be high to be able to charge as
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| competing sites are free and as making small online payments and entering credit card information may be
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| too burdensome or impracticable.
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| Pay-per-item model: In that scenario, users make per-item (micro)-payments to UCC platforms or to
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| the creators themselves to access individual pieces of content. iSTockphot, for instance, offers
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| photographs, illustrations and stock video from its user-generated stock for USD 5 each. Platforms
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| exclusively hosting UCC or established digital content sale points (such as online music stores, video-onDSTI/
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| demand platforms, or online retailers), for instance, could offer UCC as part of their repertoire on pay-peritem
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| terms. The fact that no shelf space is needed to stock a variety of content facilitates this model.
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| Subscription model: This model would entail consumers paying to subscribe to services offering
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| UCC. Yet paying a subscription to access others content is rarely used as a model. Rather users pay a
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| subscription for enhanced hosting and other services for one's own content and access to others content.
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| One of these models involves two-tiered subscription services, whereby a user may opt for a basic
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| account free of charge that provides a set amount of services or for a pro account that users pay a
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| subscription or other fee for. The pro accounts provide enhanced features, more (or even unlimited)
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| hosting space, and other options that are attractive to the user.41 A new approach involves a hosting-based
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| model with a cooperative element, such as Lulu.tv. Users pay for the service provided by the site, but are
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| also remunerated on the basis of the popularity of their content (see later discussion on this point).
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| The bundling of UCC into existing subscriptions and associated payments may be an easier option.
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| Cable TV operators, Internet Service Providers (ISPs), digital radio services and other media outlets derive
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| most of their revenue through monthly subscription fees paid by the users (e.g. EUR 29.99 for a monthly
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| Internet triple play offer in France). To remain attractive to users, such operators could opt to carry UCC,
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| either by creating special channels exclusively devoted to UCC (such as the case with FreeTV in France)
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| or by airing a selection of UCC on the regular programs. In both cases, users pay for the UCC content via
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| their usual ISP or cable subscription.
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| ===Advertising-based models===
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| (Monetising the audience via advertising)
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| Advertising is often seen as a more likely source of revenue surrounding UCC and a significant driver
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| for UCC. Models based on advertising enable users and hosts to preserve access that is free of charge to
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| the content while bringing in revenue. The economics of such a service are often compared to free web
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| mail where users get a free service, and owners of the service get to serve ads to this audience. Payment for
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| the advertising depends on numerous factors: number of users on UCC sites, related web site usage (dwell
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| time on site, depth of visit / page views per session / share of repeat visits), or clicks on the actual
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| advertisement banner leading the user to the webpage of the brand being advertised. Viable sustainable
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| business models are only likely to work with a large enough user base to attract enough advertisers and
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| actions by users generating revenue flows for the site.
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| Services that host UCC make use of advertising on the site (including banners, embedded video ads
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| and branded channels or pages) to generate revenue. The advertisements can be specific to an audience
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| most likely to be attracted by certain UCC platforms (often popular, young target groups) or to certain
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| content being watched by the user. When users search or watch a particular video, related advertising is
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| shown on the side bar, i.e. banners or short trailers start as the computer cursor moves across a banner.
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| Many UCC platforms such as Fanfiction.Net are relying on services to drive advertisement revenues
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| (e.g. Google AdSense, Microsoft, or the service provided by the UCC hosting site itself such as
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| FeedBurner Ad Network for blogs). Google AdSense automatically delivers text and image ads that are
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| targeted to the UCC site, the requested UCC content, the users geographic location and other factors (for
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| example, travel ads for China when searching for the keyword
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| China on a video site). When users click
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| on the ad, that advertisement service receives per-click revenues from the company being advertised. In
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| turn, it then pays the UCC site hosting its ads. Some UCC sites are also redistributing part of this
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| advertising money with those creating or owning the content. These models provide independent UCC
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| sites (some owned by individuals) with access to a large base of advertisers.
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| Advertising may also be placed within the content, such as within a video. Popular video podcasts
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| also incorporate advertisements where users can click to sites from within the video. Increasingly,
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| branded channels have been launched on UCC platforms where users can view content from a special
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| brand or media publisher. Virtual worlds like Calypso allow firms to create and display advertisements.
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| It is expected that sophisticated targeting techniques will increasingly enable advertisers to create
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| targeted ad messages, rather than the interruptive spots used by most sites. The quality of the targeted
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| nature of the advertisement will depend on how well videos or UCC is paired with relevant advertisements.
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| Currently, advertisements are often displayed on the basis of tags and keywords which uploaders create.
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| These may be more or less reliable with some users not creating keywords or using misleading ones to
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| attract more traffic.
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| UCC platforms have already received substantial up-front revenues from third players wanting to
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| advertise to this community. In August 2006, Google agreed to deliver at least USD 900 million in ad
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| revenue over three and a half years to News Corp. for the right to broker advertising that appears on
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| MySpace and some other sites (van Duyn and Waters, 2006). Microsoft Corp. also recently agreed to be
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| the exclusive provider of advertising to Facebook (Sandoval, 2006a).
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| Although most of the hopes to monetise UCC are currently being placed on purely advertising-related
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| business models, it will take time to show whether these models will work (c.f. also VTT Technical
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| Research Centre of Finland, 2007 which argues that social media cannot fully flourish on ad-based
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| models). Advertisers are concerned that the user audience may have grown accustomed to free content and
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| will migrate to ad-free sites. Also some advertisers are concerned to be randomly associated with UCC
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| they cannot control or foresee (e.g. a car advertisement being shown before a UCC video about a car
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| accident or other inappropriate content).
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| ===Licensing of content and technology to third parties===
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| Increasingly UCC is being considered for airing on other channels and this act of licensing content to
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| third parties (e.g. television stations) may be a source of revenue. As elaborated later, according to most
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| terms of services of UCC sites, users agree that they have given the site a licence to use the content without
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| payment, sometimes reserving the right to commercially exploit the work.44 Sometimes this may include
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| the right of the UCC site to licence the content to third parties but a revenue sharing model between
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| content creators and UCC site may apply. Increasingly deals to licence content to third parties or to
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| cooperate with third parties to share the content involve mobile carriers (e.g. the recent Verizon and
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| YouTube Watch on Mobile service)
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| Finally, UCC platforms can enter into commercial agreements with third parties to provide their
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| technology to the latter (e.g. DailyMotion entering a commercial agreement with the French ISP Neuf
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| Telecom to provide its video sharing service technology). Some UCC platforms (e.g. On2 Flix) are more
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| back-end service providers to facilitate the process of UCC video services of third parties.
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| ===Selling goods and services to community===
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| (Monetising the audience via online sales)
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| Another option is to capitalise on the large, captive user base and market own or third party products
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| to users. Due to the network effects, successful UCC sites are likely to have a large user base. This large
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| audience can be monetised with UCC sites selling items or services directly to their users. Similarly to the
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| above examples in the pay-per-item or the subscription section, blogging, photo sharing and other sites
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| may sell particular one-off or continued services to their users. But UCC platforms such as virtual worlds
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| or social networking services also allow them to sell the use of online games, avatars, virtual accessories or
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| even virtual land to their users. Korean social networking site CyWorld, for instance, receives considerable
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| revenues from the sale of digital items such as decorations for a user profile or furniture for ones virtual
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| miniroom. Users use Acorns as currency in the CyWorld Shop purchased via credit card.
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| UCC sites can also cooperate with third parties to monetise their audience via allowing the latter to
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| sell directly to their users while taking a share of the revenue. For instance, the Mypurchase service of
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| MySpace will provide the interface for creators to sell their music, taking a portion of sales revenues in
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| exchange. The popular Japanese social networking site Mixi has several approaches, one of which is to
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| allow users to rate and review books CDs, DVDs, games, electronics and other items and linking users
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| directly to Amazon Japan with one click to purchase those items (calling this social commerce) or to
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| listen to music which can later be bought over iTunes.
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| UCC platforms could also allow for transactions amongst its users while taking a share of the revenue.
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| Depending on the terms of service, other business models may involve the selling of anonymised
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| information about users and their tastes and behaviour to market research and other firms."
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| (http://www.oecd.org/dataoecd/57/14/38393115.pdf)
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| ==Economic Impact==
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| "The shift to Internet-based media is only beginning to affect content publishers and broadcasters. At
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| the outset, UCC may have been seen as competition as:
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| i) users may create and watch UCC at the expense
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| of traditional media, reducing advertising revenues,
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| ii) users become more selective in their media
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| consumption (especially younger age groups),
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| iii) some UCC platforms host unauthorised content from media publishers.
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| However, some traditional media organisations have shifted from creating on-line
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| content to creating the facilities and frameworks for UCC creators to publish. They have also been making
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| their websites and services more interactive through user comment and ratings and content diffusion. TV
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| companies are also licensing content and extending on-air programs and brands to UCC platforms.
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| There are also potentially growing impacts of UCC on independent or syndicated content producers.
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| Professional photographers, graphic designers, free-lance journalists and similar professional categories
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| providing pictures, news videos, articles or other content have started to face competition from freely
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| provided amateur-created content.
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| ...
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| Despite the non-commercial context, user-created content is already an important economic
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| phenomenon with direct impact on various industries. UCC has actively and effectively contributed to the
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| availability of broadband content. The spread of UCC and the amount of attention devoted to this area by
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| users seems to be a significant disruptive force for how content is created, consumed and for the industries
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| traditionally supplying content. This disruption creates economic opportunities and challenges which vary
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| according to market participants and their strategies. Also, the trend towards monetisation of UCC is just
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| starting and often figures on impacts directly attributable to the phenomenon are not available.
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| The next section discusses the economic implications of UCC while showing how the business
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| models invoked earlier and efforts to monetise UCC may affect various industry participants. At this early
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| stage those economic impacts especially in terms of GDP growth and employment - are hard or
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| impossible to quantify.
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| As reflected in Table 7, in the context of UCC, different industry sectors and firms have very different
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| rationales and economic impacts.46 The specific business models and economic impacts on UCC platforms
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| were discussed in the earlier section on value chains and emerging business models.
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| While in the context of UCC, most press reports centre on the impact of UCC on traditional media
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| firms, the more immediate impacts may be on users and non-media firms. The more immediate positive
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| impacts in terms of growth, market entry of new firms and employment are currently with ICT goods and
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| services providers and newly forming UCC platforms which attract significant investment. Another set of
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| firms particularly active in monetising UCC are search engines, portals, and aggregators which are seeking
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| to formulate business models surrounding search, aggregation and distribution of this content which is
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| often based on online advertisement.
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| Impacts are also starting to be felt by certain professional (free-lance) content producers such as
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| journalists, photographers, and others who now compete with freely available web content.
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| ===Users / Creators===
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|
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| New models are also emerging which allow for remuneration of the content creators (i.e. creators of
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| original works) as, for example, surveys of younger age groups point to greater willingness to place ads at
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| the end of videos, to feature brands in the video and to derive revenues from their work.52 A distinction
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| must be made between models that garner revenue for the creators themselves and models which entail
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| revenue sharing between creator and host.
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| Originally, the possibilities for users to derive profits directly and without intermediary from their
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| works were limited. A co-operative-based model is one where the creators contribute money to the service,
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| and then this revenue is redistributed among creators. A hybrid model, such as Lulu.tv, combines the cooperative
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| method with shared ad-based revenues. Users pay for the service provided by the site, but then
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| they are remunerated on the basis of the popularity of their content. There is also the possibility of flat-fee
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| subscription services in which creators would be remunerated.
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| New services have arisen which allow for unlimited uploading and exchange of various content and
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| which are financed by monthly fees from subscribers or Internet Service Providers. The Digital Media
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| Exchange (DMX) is such a model based on P2P technology and operated as a non-profit co-operative.53
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| Beyond unlimited exchange it allows users to make derivative works from the content while being
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| copyright compliant. DMX collects monthly fees from subscribers or their ISPs, and pays all of the
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| collected fees to content suppliers.
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| Most revenues for creators are likely to come from revenue-sharing models between creator and host
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| which again are based on advertising revenues discussed earlier. In the case of creator-based advertising,
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| users would utilise advertising on, within, or surrounding the content they created. For example, bloggers
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| may put Google AdSense advertisements on their site in order to obtain revenue. A lot of new companies
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| and software tools are allowing users to post content and be remunerated (e.g. Ripple Share). UCC
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| platforms are usually involved in remunerating content creators. In Korea, Mgoon has introduced a website
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| tag story where users post their own content and share advertising profits generated by them with the
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| company. Korean Shotech UCC site has started to share 30 to 40% of its advertising proceeds with UCC
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| makers. Other upstarts such as Revver, Feedburner, Blip.tv and Panjea.com share at least 50% of their ad
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| revenue with users who create their content.55 It is expected that the quality of the UCC can be improved
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| via remuneration of its creators.
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| Also, professional and paying opportunities can arise for users engaging in the creation of content. For
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| example, students in popular lip-synching videos were later hired to be in commercials. Remixers, bloggers
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| or video podcasters have been hired by major music companies or major media companies.
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| Turning to the users who consume the content, the latter benefit usually from free access to more
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| diverse content which may be entertaining, educational or serve other purposes. Especially information and
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| knowledge commons mentioned earlier can add significantly to the welfare and entertainment of citizens."
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| (http://www.oecd.org/dataoecd/57/14/38393115.pdf)
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| ==Monetisation of user-created content and new business models==
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| "Commercial entities, including media companies, are playing an increasing role in supporting,
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| searching, aggregating, filtering, hosting, and diffusing UCC. Direct revenue generation from this
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| phenomenon for the creators of the content or for established commercial entities (e.g. media companies,
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| platforms hosting UCC) are only starting to emerge. Until recently, sites hosting UCC were essentially
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| non-commercial ventures of enthusiasts or start-ups with little or no revenues but with increasing finance
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| from venture capitalists. These sites often did not have business plans showing how revenues or profits
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| would be produced, some losing significant money day-on-day due to the high bandwidth costs. Rather
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| their objective was to increase the user-base by appealing to ever-greater audiences and users, potentially
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| with an eye to selling their business or starting to implement business models at a later stage.
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| Yet when projects reach a certain size considerable financial resources are necessary for the
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| technology, bandwidth and organisation to keep it going. Also, given that many UCC platforms host
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| unauthorised content from third parties, they face challenges with respect to remunerating the content
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| originators.
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| UCC sites are also increasingly subject to business and investor interests. Mixi, the Japanese SNS site,
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| for instance, and Open BC/Xing, a German business SNS site, have been listed on stock exchanges.
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| Moreover, established media conglomerates but also Internet-based companies have been increasingly
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| interested in deriving revenues from UCC sites. Firms such as News Corp, Google, Sony and Yahoo have
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| invested significant amounts of money to buy UCC sites."
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| (http://www.oecd.org/dataoecd/57/14/38393115.pdf)
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|
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|
| =Discussion= | | =Discussion= |
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-Generted Content - Business Models
Discussion
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
- Wikipedia article at http://en.wikipedia.org/wiki/User-generated_content
- Overview of 2006 UGC developments in the Guardian, at http://www.guardian.co.uk/weekend/page/0,,1939196,00.html
- John Batelle introduces the different logic of packaged media vs. conversational media, at http://battellemedia.com/archives/003160.php
- See the related concept of Crowdsourcing
- OECD Study on the Participative Web and User Generated Content [2]