User Generated Content Based Business Model in India

A Discussion about

By Prashant Singh

www.knowprashant.blogspot.comEmail:pacificleo-AT-Gmail-Dot-Com

Who AM I ?

Program Manager @ Monsoon Multimedia , Internet & Mobile Enthusiast, Blogger ,

Coordinator Mobile Monday Delhi, Coordinator Of iFix Delhi , aspiring Entrepreneur .......

What this Discussion is about ??

Problems of User Generated Content[UGC] Based Business in India and Possible Solutions

What is User Generated Content ?

"User generated content (UGC) , refers to various kinds of media content, publicly available, that are produced by end-users. ……..user generated

content may also employ a combination of open source, free software, and flexible licensing to further diminish the barriers to collaboration, skill-

building and discovery.“ ~Wikipedia

User Generated Content

Wikipedia ,Blogs,

User Uploaded Content

Flickr,YouTube

User Provided Content

P2P,Bit Torrent

Global Leaders in UGC

Knowledge Sharing WikiPedia , Yahoo Answers

Video You Tube, Blip.tv, MetaCafe, Google Video

Photo Sharing Flickr,Photobucket

Blogs Blogger, WordPress, SixApart, Vox

News Slashdot, Digg, Reddit

Bookmark Del.icio.us

Document Sharing Scribd

Widget Slide

E Commerce Threadless , Zazzel, Moo.com

Misc tired.com

Indian Players in UGC

Consumer Internet in India : Some Numbers

Number of PC in India =23 PCs / 1000 Indians.

Number of Internet Users = Approx 40-45 MillionNumber of Mobile handset = 200 million, Growth rate of 8 Million/Month.

Number of GPRS/WAP Subscribers =38 Million, including walled garden users.

Size of Mobile VAS Market =Rs. 2,889 Crore.

2.4 million E-Commerce users & 7.5 Million Chat users in the 26 cities.

Internet penetration in India is 3.9% & it is expected to go up to 5.8% by 2010.46 % of the Internet Access is from CyberCafe

Most of the corporate provide restricted or monitored internet access to the employees

A Rapidly Growing World Class Media Sharing community from India

Traffic from India - 3-4% of overall traffic Content uploaded from India - 5-6 %

DesiMartini :An Indian Soc Nw. Success Story, had 2.5 Lakh Users at the time of being acquired by HT Media

Flickr views from India = 2-3 % Flickr users from India =less than 2%

India Network at Facebook have 3,30,575 Users

Lets check Wikipedia Stats: http://stats.wikimedia.org/EN/Sitemap.htm

For Hindi( HN) , Tamil (TA) ,Bengali(BN), Marathi (MR)

Indian startups profiled on TC : Slideshare, Riya, Zoho, Live Documents, Toufee

WEB 2.0 : Participation Statistics

Analysis of Blogging Scene in India

Geographic distribution of user base of Blogger.com [ A Google Company]

Demographic distribution of user base of Blogger.com [ A Google Company]

Why there is a drop in participation at Age 31-40 Years Age Group ?

Student, 16.3

Engineering, 12.8

Education, 4.2

Internet, 4

consulting, 3.6media, 3.2

Tech, 20

Tech Student Engineering Education Internet Consulting Media

20 % 16.3 % 12.8% 4.2% 4% 3.6% 3.2 %

Open Source,Collaboration, Troubleshooting, Vanity users

Free Content, Dating ,

Asserting Soc Persona in peer group

Enterprise Branding,

Sharing Best practices

Gaining Knowledge,

Vanity users

Relevance to Job

Immediate Reward

Demonstrating Expertise ,Buil

ding an Identity

Repackaging content To &

For Mainstream

Monitored

Access, Conflict of interest HR issue

Cost, Monitored

Access

Poor Infra.High Cost,

Lack of immediate Application

Poor Infra.High Cost,

Lack of immediate Application

Confidentiality issue .

Free Rider

Copyright issue,

/monetization .Extensive

measurement

Industry wise Distribution of Bogglers in India

Some Expert Remarks

“I think people are wasting their time on Web 2.0 in India.”

~Avnish Bajaj , Matrix Partners “social internet is waiting to be discovered in India. And like any other business, the customer is a good place to start from”. ~Alok Mittal , Executive Director,Canaan Partners

In Dotcom boom of 90s internet penetration was very little still there were 20 + site on cricket today same can be said about Social networking & Airline Booking. ~Economic Times

Unsung Heroes: Early Birds who don’t call them UGC

Where actually content is being created

Now Some good News : In spite of all these numbers Content is being created

Problems in Implementing UGC Model in India

Infrastructure Friction for Content Creation & consumption

Prohibitive Cost of Owning a PC

Poor or Nonexistent Broadband in most of the cities . Majority of Internet Access is still from Cyber Café . Not an Ideal setting for content creation and consumption .

Good News

Very High Mobile Phone Usage, Falling Cost of High end device , extreme adaptation at using SMS ,comfortable to pay for content over mobile .

Low cost Internet enabled PC from Novatium @ Rs 4500. Cost Subsidized by Advertisement + Content

Lack of payment infrastructure and capability , User don’t have Credit Card and are not comfortable to use it online

@Box, a sub-$100 computing device from I-Chip .

Bit Torrent : Mindset Friction for Content Creation

Point to remember :India has cheapest internet access rate in world and Cyber law are not enforced strictly

Are we the World’s Biggest Free Riders? ~V RAGHUNATHAN in

Friction in Content Creation Due to Platform itself

Lack of Support toward creating local language content .Internet is still an English only Phenomena.

WORDPRESS OR GIZMODO: Choosing the right battle Adding something to conversation comes before starting conversation

Personal Value Precedes Network (Social) Value:Is your service valuable to someone even if nobody else uses it?

Friction for Content Creation due to the way service is being Promoted

LEWIN’S EQUATION B=ƒ(P,E)Behavior is a function of the Person & his or her Environment

Mallika Sherawat has Spammed Tagged YOU

No Comment !!!!!!!!!

Throw Money Get User

………….Rudaali …………

Monetization of UGC

Everything to be free on internet. But User is comfortable paying for content on mobile .

Advertisement is still the de facto Biz Model

Citizen Journalism : UGC as a Starting Point for mainstream media

Focus Group Study :Conversational Survey/Questionnaire Comment Aggregation in Blogs

Tapping in to Collective Creativity of Masses : Nautanki.tv, Filmaka.in

Sulekha-Penguin Global Writer Contest : UGC for Mainstream Publication

Size of Advertisement Industry in India = $3 Billlion

Share of Internet Advertisement is just $100 Million & its Growing @75% Annually .

http://miteshvasa.blogspot.com/2006/06/blogalysisbloganalysis.html

http://miteshvasa.blogspot.com/2006/07/state-of-indian-blogosphere.html

http://www.iamai.in/section.php3?secid=15&press_id=1252&mon=10

http://radio.weblogs.com/0121664/2006/10/12.html

http://www.hindu.com/2006/09/23/stories/2006092305950400.htm

http://economictimes.indiatimes.com/articleshow/1708175.cms

http://www.contentsutra.com/entry/419-avnish-bajaj-says-social-networking-is-a-waste-of-time-in-india

http://www.pewinternet.org/pdfs/PIP_Content_Creation_Report.pdf

http://www.pds.ewi.tudelft.nl/~iosup/aiosup05asci.pdf

http://www.hpl.hp.com/techreports/2007/HPL-2007-123.pdf

http://www.firstmonday.org/issues/issue11_11/ripeanu/index.html

http://www.hpl.hp.com/techreports/2007/HPL-2007-26.pdf

http://www.bokardo.com

http://www.businessweek.com/globalbiz/content/nov2007/gb20071130_949605_page_2.htm

References

Thanks

Want to Talk about it ?