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Tag Archives: profit

by nathanjurgenson

Apple-iPhone-001Recently, this blog [note: this was originally posted over at Sociology Lens] has focused on the labor of the crowds. I have posted that the “prosumers of the world should unite” and have continued to write on the topic. Bmckernan expertly handled the topic when discussing “light” capitalism and more recently pj.rey convincingly demonstrated that prosumption is a structural force at play in the death of old media. This post is driven by the recent announcement that Facebook, now nearly the size of the United States, has become profitable (or “cash flow positive“). This re-ignites the debate around companies profiting from increasingly personal and intimate information about ourselves and our lives.

As prosumers on Facebook (that is, we both produce and consume the content on the site), we display ourselves and our socializing with others, and it is precisely this data, this digital goldmine, that Facebook leverages for profit. Another trend of intimate data being shared has to do with “geotagging” and “location awareness” tools.

Location awerness simply refers to tools -often utilizing “smart” mobile phones that are GPS-enabled and always in our pockets- that track and display one’s geographic location. The Loopt iPhone app does just this by keeping track of where the user is and helping them share the information with others. Yahoo has the Fire Eagle service, Google has Google Latitude, and Twitter has also begun to “geotag” tweets with their geographical location. Given these technologies, we can share our past and current geographical locations with ourselves and others by plotting them on maps, posting them as our Facebook or Twitter statuses and so on.

In these examples, we see that the very titans of Web 2.0 capitalism are set to profit (or at least try to) from another intimate source of data: where one is physically located at any given moment. The degree to which these tools become ubiquitous is the degree to which our very lives become a source of ‘intimate profit’. To this point, and I’ll leave with a question to tackle in a later post: does it matter that companies profit from increasingly intimate user-data regarding their self/their socializing/their very location if users find these tools useful? ~nathan

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by nathan jurgenson

cable1Lately, we have been doing lots of work, for others. For free.

Millions of users of sites like Facebook and MySpace are clicking away at their profiles, adding detailed information about themselves and others. “We” are uploading content to sites like Flickr, YouTube, the microblogging service Twitter and many others, and our labor creates vast databases about ourselves –what I previously described as a sort of mass exhibitionism.

Facebook’s profit model is built upon an ownership of its user’s labor, specifically, the intimate detail of our lives and self-presentations. This is an example a larger trend of “prosumption,” that is, the simultaneous role of being a producer of what one consumes. In the material world we are doing this more often by scanning and bagging our own groceries, checking ourselves onto planes and into hotels, etc. The websites mentioned above are part of the user-generated and social turn the Internet has taken in the last few years –what has come to be known as Web 2.0. And prosumption generally, and especially on Web 2.0, is the mechanism by which we become unpaid workers (“crowd sourcing”), producing valuable information for the benefit of businesses. This is the almost endlessly efficient business model of Web 2.0 capitalism.

Karl Marx argued for taking control of the means of production, and on Web 2.0, to some degree, we have. But what remains in the hands of the few, the businesses, is the profit-potential. Facebook’s reach is ever-growing and the company is valued at $15 billion dollars as of 2007, precisely due to the data that users donate to the site.

Perhaps many do not mind giving away their labor because they enjoy the services provided, such as the richly social Facebook platform. However, we should also ask why the personal data of ourselves, that we are producing, does not belong to us? Given the successes of non-profit/open source software and applications (e.g., Linux, Firefox, etc), shouldn’t we be calling for a non-profit/open source social networking platform (i.e., an open source Facebook-like platform) where businesses do not own the highly personal data about ourselves and our socializing? What other ways can we think of that removes the link between our data (and labor) and corporate profit? ~nathan