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CMC Seminar Template 2007 T-86.5750 Seminar on New Business in Digital Economy 1 User-generated content and its business Quentin Désert, Antonin Subtil [email protected] - [email protected] 1 Introduction Web 2.0 is a silent technological revolution that brings a new way of using the Internet. The relation between users and websites was completely changed, and now everyone can publish and share over the Internet without any particular knowledge. This success story show up during the years 2005 and mainly 2006, and quickly reach the top visited websites. Not only the big Internet companies, but also computing industry is now look- ing on Web 2.0 and its new websites. Why so much interest? User-generated content is also known in computer game industry for years now. Some games found a second life thanks to user-generated content; others found 90% of their material like this. What is user-generated content, how can it be in computer games? User-generated content is a turn-over in many industries, and we will try to have a quick overview of what it is, who use it, is it legal, and how can we make business with it. 2007 T-86.5750 Seminar on New Business in Digital Economy 2 Content Plan 1 INTRODUCTION .........................................................................................................................1 2 OVERVIEWS ................................................................................................................................3 2.1 OVERVIEW OF WEBSITES..........................................................................................................3 2.1.1 What is Web 2.0?................................................................................................................3 2.1.2 Youtube : the video broadcaster .........................................................................................3 2.1.3 Jamendo : discover new musics..........................................................................................4 2.1.4 Flickr : store, search, sort and share your photos..............................................................6 2.1.5 MySpace : blog your own life .............................................................................................7 2.1.6 Lulu: publish yourself.........................................................................................................8 2.1.7 Wikipedia............................................................................................................................9 2.2 OVERVIEW OF GAMES ..............................................................................................................9 2.2.1 What is a mod? ...................................................................................................................9 2.2.2 Half-Life and Counter-Strike..............................................................................................9 2.2.3 Civilization IV and Fall from Heaven 2............................................................................11 2.2.4 Warcraft III and Defense of Ancients ...............................................................................13 2.2.5 The Sims: success story of user generated content...........................................................15 2.2.6 Second Life: social gaming and user generated content ..................................................17 3 LEGAL ASPECTS ......................................................................................................................19 3.1 WEBSITES: WHAT CAN BE UPLOADED?..................................................................................19 3.1.1 Jamendo: free music.........................................................................................................19 3.1.2 Flickr: share your photos .................................................................................................19 3.1.3 YouTube: creator of litigations.........................................................................................20 3.1.4 MySpace: owner of million of medias?.............................................................................21 3.2 LICENCES...............................................................................................................................21 3.2.1 Creative Commons ...........................................................................................................21 3.2.2 Free Art license ................................................................................................................22 3.3 MOD’S OWNERSHIP: THE COUNTER-STRIKE CASE..................................................................22 4 FINANCIAL OVERVIEW: BUSINESS MODELS .................................................................23 4.1 MYSPACE'S ECONOMICAL MODEL: ADVERTISEMENT..............................................................23 4.2 FLICKR'S ECONOMICAL MODEL: MONTHLY FEE......................................................................24 4.3 JAMENDO'S ECONOMICAL MODEL: ADVERTISEMENTS SHARED WITH AUTHORS......................24 4.4 WHAT CAN A MOD BRING TO YOU? ........................................................................................25 5 CONCLUSION ............................................................................................................................27 6 REFERENCES ............................................................................................................................28 2007 T-86.5750 Seminar on New Business in Digital Economy 3 2 Overviews 2.1 Overview of websites 2.1.1 What is Web 2.0? “Web 2.0 refers to a perceived second-generation of Web-based services—such as social networking sites, wikis, communication tools, and folksonomies—that emphasize online collaboration and sharing among users.” – Source: Wikipedia 2.1.2 YouTube: the video broadcaster 2.1.2.1 Presentation of YouTube YouTube describe itself as an online video provider. It is actually the most popular video sharing website in the world, and was classified as the 4th most visited website on the Internet. YouTube was launched in February 2005 by three Paypal employees, and bought in October 2006 by Google for $1.65 billion. It is a video storage and broadcasting free service. You can see videos from its community but also share your own. YouTube 2007 T-86.5750 Seminar on New Business in Digital Economy 4 YouTube allows its users storing and sharing video on its server, using the Flash technology, but also rating videos, adding comments to these videos… and creating communities. Videos are accessible by categories, keywords (called tags), and can be imported on personal websites. The community system allows making comments and grading each video, by being registered to YouTube. YouTube also allows playing the videos anywhere on the Web: the service provides HTML links to use, which include an embedded player. Now it is possible to upload to Youtube from a phone. YouTube is now very popular, although it doesn’t allow downloading any video, as it is in Flash technology. 2.1.2.2 YouTube vs. GoogleVideo YouTube is not the only video broadcaster on the Internet; its two main competitors were GoogleVideo and DailyMotion. However, GoogleVideo is no longer updated because Google bought Youtube and merged both services. Without getting into too much detail, as the GoogleVideo didn’t live that much, we can note a small difference between the two services: videos can be freely put on the Web with YouTube, while they need an agreement on GoogleVideo. This has lead to less videos and then a smaller community; however this might have prevented the legal problems of YouTube, although GoogleVideo didn’t set any limit to the file’s size allowed in upload (YouTube limits to 10 min. and 100 Mo). Another difference is that GoogleVideo was offering to download the videos for a dedicated player or iPod/PSP, unlike YouTube. 2.1.2.3 Short selection of videos - Ask a gay man, shows by one user, with always many answers. http://www.youtube.com/watch?v=AVESRceJL5k - Evolution of Dance (Judson Laipply), the most popular video on YouTube (viewed 47.19 mil- lion times) http://www.youtube.com/watch?v=dMH0bHeiRNg - Free Hugs Campaign (music by Sick Puppies), one of the most popular videos on YouTube http://www.youtube.com/watch?v=vr3x_RRJdd4 2.1.3 Jamendo: discover new music Jamendo is a website intended to share music. The aim is that artists can upload their albums under Creative Commons licenses or the Free Art License; and users are free to listen (in stream- ing) any album through the website, or download it freely and legally, in mp3 or Ogg Vorbis 2007 T-86.5750 Seminar on New Business in Digital Economy 5 formats (Ogg Vorbis is open source). They are then allowed to copy and share it via peer-to-peer networks (BitTorrent and eDonkey). Depending on the license, they can even modify it and use it on commercial purposes (not for every file, though). Jamendo The website includes different functionality, such as a rating and recommendation system, a tag and reviews system, helping users to discover the artists, and the possibility to make dona- tions to artists via Paypal. Jamendo was launched in January 2005. During the year 2006, more than 2100 albums were added to its database; almost 3000 albums are available today. Here is the main functionality of jamendo: - Music available under Creative Commons license, meaning that artists allow users to listen, download, copy and redistribute their music, although they keep the copyright
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