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In this presentation we present viable business models and copyright policies for user generated content (UGC) services. Market players come from various backgrounds and adopt different strategies to create and capture value with user generated content and deal with copyright issues. Based on extensive market research and 13 case studies, the business models and strategies to deal with copyright issues for three different service provider are discussed. The starting point for exploring viable business models is the fact that user generated content in principle serves a niche market and is part of the ‘long tail’ of content. In line with the business logic of the long tail, service provider do not aim to fully control copyrighted content. Only when the copyrighted material reaches a critical level of public exposure, it becomes feasible from a business as well as user point of view to enforce copyright regulation.
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User generated content: Business Models and Copyright Sander Limonard, Jop Esmeijer, TNO ICT
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Outline presentation
Scope, definition, appraoch
Business models for UGC platforms
Copyright strategies for UGC platforms
Discussion
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Definition UGC
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distributors
producers
traditional publishers
5producers
traditional publishers
distributors
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distributors
producers
traditional publishers
new publishers
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The long tail for User Generated Content
# v
iew
ers
Original professional content
Mix of professional and user generated content
Original user generated content
‘tipping point’
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Outline presentation
Scope, definition, appraoch
Business models for UGC platforms
Copyright strategies for UGC platforms
Discussion
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new publishers
distributors
producers
Traditional publishers
traditional publishers
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Examples of UGC platforms of media companies
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UGC services to create impact and filter out talent
• Media companies create UGC platforms
• Users can enter into contest or ‘play around’
• Goal is to have more impact/create loyalty
# v
iew
ers
Original professional content
Mix of professional and user generated content
Original user generated content
• Crowdsourcing: filter out good ideas talent and ready made content: “IDOLising”
• UGC = enriching the current offer
• UGC makes programs more ‘authentic’
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distribution
producers
traditional publishers
New publishers
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Also hosts professional content
Most populair clips on Youtube are professional video clips!
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• Open content library• Moderation before
disclosure• Acts as agent on behalf of
user
• Revenue model • Advertising after clip• Syndication to IPTV and
mobile TV platforms• Revenues are shared:
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Intermediary in demand and supply for UGC
• Let professional media players syndicate content in niches
• Enable media players to have dialogue with their customers
# v
iew
ers
Original professional content
Mix of professional and user generated content
Original user generated content
• Give users opportunity to share and enrich UGC
• Act as agent for users
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Conclusion business models#
vie
wer
s
Original professional content
Mix of professional and user generated content
Original user generated content
‘tipping point’
user-producer interface
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Outline presentation
Scope, definition, appraoch
Business models for UGC platforms
Copyright strategies for UGC platforms
Discussion
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Copyright strategy down the tail
• Social networking mechanism is critical tool in monitoring and managing copyright infringement
• Settlement of copyright infringement: from court case to business deal
NY Times (5-11-07): Reuters strategy in fighting infringement […] Finding unauthorized use “clearly is a big opportunity for us,” Mr. Ahearn said, both
to drive traffic to the Reuters site and to turn cheaters into customers. He added, “Our attitude is there are enough lawyers in the world, so why don’t we turn this over to our sales people?”
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Copyright strategy from niche to mass market
• Most Terms of Use are static, and offer limited control by user: • EITHER most rights are reserved by service provider OR some
rights are reserved but service provider does not moderate: • Risk: private content not intended for public display becomes
popular: privacy and moral rights at stake
• Flexible terms of use hard to find. Exceptions:
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From control to management of copyright
copyright interface
Once one single video clip or a collection of niche clips reaches critical mass, a more strict copyright is called for
Once one single video clip or a collection of niche clips enters a niche environment, a more flexible copyright regime is called for
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Need for standardization in measuring popularity
Need to agree on value• How to measure in niche markets• How to agree on value of niche (collections)• How to draw the line between niche and popular content
Everybody measures differently
Source: www.tubemogul.com
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Outline presentation
Scope, definition, appraoch
Business models for UGC platforms
Copyright strategies for UGC platforms
Discussion
