video searching and ad targeting

Searching video is notoriously difficult. That implies a scaling problem for a large video repository like YouTube. Given relatively fixed amounts of video tagging and category information, more videos imply relatively less information for searching among videos and targeting ads to videos.

YouTube's announcement of new APIs for external use of the YouTube video platform points to better information for video search and ad targeting. Videos uploaded and played through a third-party site are segmented by the specific third-party site. Third-party sites also have differentiated text correlated with the content of associated videos. This additional information allows better video search and better video ad targeting compared to what's possible for videos uploaded and viewed on the YouTube site.

Online video services have many different niches. Decentralizing video uploading and playing provides a more scalable business for YouTube.

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taking rights seriously

False or excessively broad claims to rights, if taken seriously, could have devastating effects on content businesses. For example, U.S. National Football League (NFL) broadcasts include the following statement:

This telecast is copyrighted by the NFL for the private use of our audience. Any other use of this telecast or of any pictures, descriptions, or accounts of the game without the NFL's consent, is prohibited.

The claim, "This telecast is copyrighted by the NFL for the private use of our audience," is absurd. Copyrighting a telecast is not necessary for the private use of it, nor is advancing that use a credible explanation for the NFL's copyright action. The problem is not just that the NFL has not expressed a credible business justification for its copyright. The second sentence of the NFL's statement seems to imply that football fans need permission from the NFL to discuss games ("accounts of the game") that they watch on television. That's an impressive anti-social business-destroying effort.

The NFL has not yet succeeded in destroying its business. Perhaps that's because because football fans recognize copyfraud. The NFL recently has shown no respect for copyright law. The RIAA has executed astonishing initiatives to destroy the music business. If the NFL is serious about destroying the football business, it might run a few plays from the RIAA's playbook.

Shrewd and successful new media businesses seek to become platforms for users to share and discuss users' works. YouTube's terms of service state:

For clarity, you retain all of your ownership rights in your User Submissions. However, by submitting the User Submissions to YouTube, you hereby grant YouTube a worldwide, non-exclusive, royalty-free, sublicenseable and transferable license to use, reproduce, distribute, prepare derivative works of, display, and perform the User Submissions in connection with the YouTube Website and YouTube's (and its successor's) business, including without limitation for promoting and redistributing part or all of the YouTube Website (and derivative works thereof) in any media formats and through any media channels. You also hereby grant each user of the YouTube Website a non-exclusive license to access your User Submissions through the Website, and to use, reproduce, distribute, prepare derivative works of, display and perform such User Submissions as permitted through the functionality of the Website and under these Terms of Service. The foregoing license granted by you terminates once you remove or delete a User Submission from the YouTube Website. [first bold type in original; second, added here]

Google and BSkyB (Sky) have teamed up to produce SkyCast. This video service offers users a much different deal:

If you send us videos, messages or other content, we will be able to use your content in any way we like. So, we might decide to put your content on one of our other services, like TV, or give it to someone else to put on one of their services. We might even decide not to use it at all! If you decide to take your content off the Service, Sky can still use it in any way we like.

In addition:

You waive all moral rights in relation to your Content.

Moral rights, such as Article 6bis of the Berne Convention, apparently can be waived in some jurisdictions. While SkyCast filters submitted content, its terms of service declares "thou shalt not submit content" that:

1.1 is in breach or promotes the breach of any third party rights (including third party intellectual property rights);
1.2 is defamatory, offensive or libellous;
1.3 promotes racism, bigotry, hatred or harm of any kind against any group or individual or would subject any person to ridicule or cause other people to shun or avoid such an individual;
1.4 harasses or advocates the harassment of another person or persons;
1.5 promotes conduct that is abusive, threatening, obscene or distasteful;
...
1.24 refers to any arrest of an individuals [sic] or any active court proceedings.

Moreover, in conjunction with the opportunity to offer their work to SkyCast, users are required to accept liability to SkyCast and third parties:

5.5 You will reimburse Sky and any third party who provides services to you as part of the Service for any losses, costs or damages incurred by Sky and/or any third party, on demand, arising out of:
5.5.1 your use of the Service, or anybody else that your [sic] allow to use the Service using your SkyCast Profile; and/or
5.5.2 your breach of these Terms of Use.

How would one assess the financial risk of this liability given the terms of service?

I cannot imagine that any rational, informed users would actual agree to submit work to SkyCast. Put different, if users take seriously their rights as currently set forth in SkyCast's terms of service, I think SkyCast's business is worthless.

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novel content creation

In the middle of the eighteenth century, a new form of content creation grew rapidly in Britain. The new popular content was long, realistic but fictional narratives of ordinary individuals whose lives nonetheless were put forward as significant for everyone. These works were called "novels."

Novels were YouTube in the eighteenth century. Authors of novels included roughly equally men and women, "leisured gentlewomen, high-profile aristocrats, obscure vicars, and curates, sea captains, destitute merchants' wives, reformed and some unreformed prostitutes, over-archieving adolescents, and pious autodidacts." A leading novel publisher in Britain explained in 1769:

all we have hitherto published have been sent to us unsolicited from their authors, without any stipulated pay, promise of reward, or previous agreement whatsoever, either by ourselves or any other person for us.

Most authors didn't even have their names attached to their work: about 72% of new novels published in Britain and Ireland, 1770-1799, were published anonymously.[1]

Most novelists received little monetary compensation for their works. Sometimes authors funded publication of their works, or assumed liability for losses from publication. When authors sold their copyrights, the typical payment was low but payment variance was high. For example, in 1787 a publisher bought a copyright from an obscure novelist for £5, while in 1794 the same publisher bought a copyright from a well-known novelist for £500. The median payment to British novelists among surviving copyright sales receipts, 1770-1799, was about £29. That was about the annual earnings of building craftsmen. By 1860 in the U.S., only 216 persons declared their profession to be "author." In contrast, 3,154 persons declared their occupations to be the newer occupations of daguerreotypist and photographer.[2]

While authors of novels typically did not earn enough money to sustain themselves, novels quickly dominated popular book reading. In the late eighteenth century, purchasing books would have been a financial hardship for most persons. Social and commercial libraries, however, made books much more readily available. At the end of the eighteenth-century in Britain and in the U.S., novels comprised 40% or higher shares of titles in commercial circulating libraries. Limited evidence from circulation records suggests that the share of novels among books borrowed was probably higher than 50%.

Novels had well-recognized popular effects in the second half of the eighteenth-century. Commentators observed that a rage to read (Lesewut) was gripping the German lands. Reading the novel The Sorrows of Young Werther [Die Leiden des jungen Werther, 1774] prompted young men to dress like the character Werther. Reportedly about 2000 young men committed suicide in sympathy with Werther. In France, the novel Julie, or the New Heloise [Julie, ou la nouvelle Héloïse, 1761] created a large body of weaping readers. American readers of the highly popular novel Charlotte Temple (1794) tended her purported grave in New York City.

The prevalence of imitations, mock sequels, and parodies among late eighteenth-century novels marked them to contemporaries as a "faddish, superficial make of literature." Following Henry Mackenzie's popular Man of Feeling (1771) came the anonymous and forgotten Man of Failing (1789). Only one year after Hannah More's highly successful didactic work, Coelebs in Search of a Wife (1809) came Coelebs in Search of a Mistress (1810), under the likely authorial pseudonym Sir George Rover. Many now-forgotten novels of the late eighteenth and early nineteenth centuries were hastily written, poorly crafted works.[4]

Many influential persons in the eighteenth and early nineteenth centuries considered novels to be wastes of time, causes of ill health, and corrupters of virtue and morals. In 1794 a London reviewer described a new novel, Widow, as "fashionably vicious." The reviewer warned against reading such novels and implicitly proclaimed the importance of the reviewer's own work:

O! for a warning voice to prevent those, at least, in whom age has not yet destroyed the capabilities of improvement, from dreaming away their hours in turning over publications like these.

Another author more directly warned against reading for amusement and diversion:

To read a book merely in order to kill time is an act of high treason toward humanity because one is belittling a medium that was designed for loftier purposes.

Others described reading as a cause of masturbation and other injuries to good health:

the obligatory position, the lack of all physical movement when reading, combined with the violent alternation of imaginings and feelings [create] limpness, bloatedness and constipation of the intestines, in a word hypochondria, which has a recognized effect on the genitals of both sexes, particularly of the female sex [and creates] coagulations and defects in the blood, excitation and exhaustion of the nervous system, as well as conditions of langour and weakness in the whole body.

The effect of novels on manners and morals was an acute concern. Novel reviewers in London publications in the late eighteenth century described reviewed novels as "one of these pernicious incentives to vice that are a scandal to decency"; "utterly repugnant to every idea of delicacy and honor"; and, "Written solely for the use of circulating libraries, and very proper to debauch all young women who are still undebauched." A popular American author of conduct literature noted in 1831:

Of late years, the circulating libraries have been overrun with profligate and strongly exciting works, many of them horribly exciting. I have deep prejudice against the whole class. The greater the genius displayed, the more dangerous the effects. The necessity of fierce excitement in reading is a sort of intellectual intemperance; and like bodily intoxication, it produces weakeness and delirium....They have a most unhealthy influence upon the soul....

From a less evangelical, more republican position, novels were described as "murdering of freedom of thought and the press." Similarly quotations from late eighteenth and early nineteenth century sources could be multiplied endlessly. All the ill effects ascribed to television, video games, and the Internet in recent years apply equally well to reading novels two hundred years ago.[5]

Novels and tabloids changed persons' relationships to printed words. Historians of the book have described a "reading revolution" (Leserrevolution) -- a shift in the distribution of reading from intensive reading (reading a book, particularly the Bible, carefully and repeatedly) toward extensive reading (reading one new novel after another). More generally, the rise of empirical science shifted authority from a bounded text to an unbounded corpus of evidence. The expansion of print functioned like science in the realm of imagination and culture.

About 1854, a man who grew up in Ridgefield, Connecticut recalled his youth:

Books and newspapers -- which are now diffused even among the country towns, so as to be in the hands of all, young and old -- were then scarce, and were read respectfully, and as if they were grave matters, demanding thought and attention. They were not toys and pastimes, taken up every day, and by everybody, in the short intervals of labor, and then hastily dismissed, like waste paper. The aged sat down when they read, and drew forth their spectacles, and put them deliberatively and reverentially on the nose. These instruments [spectacles] were not as now, little tortoise-shell hooks, attached to a ribbon, and put off and on with a jerk; but they were of silver or steel, substantially made, and calculated to hold on with a firm and steady grasp, showing the gravity of the uses to which they were devoted. Even the young approached a book with reverence, and a newspaper with awe. How the world has changed![6]

Yes, the world has changed. The world continues to change.

The history of the novel helps to provide some perspective on current media developments. Today major media companies are struggling to set up user-generated content divisions to foster production of user-generated content. At the same time, author and blogger Andrew Keen is promoting his new book entitled, "The Cult of the Amateur." He recently changed the book's subtitle from "How the democratization of the digital world is assaulting our economy, our culture and our values" to "How today's Internet is killing our culture." Without a whiff of amusement, a leading blogger laments, "There's no food for thought in this book." Even more seriously, a business intelligence company recently reported that user-generated videos "made up 47% of the total online video market." The report proclaimed, "consumer usage exploded in 2006 but revenues will prove slow to develop. The honeymoon period for user generated content is over."

The entertainment business is as strong as ever.

* * * Notes and Sources * * *

[1] Raven, James (2000), "Historical Introduction: The Novel Comes of Age," in The English novel, 1770-1829: a bibliographical survey of prose fiction published in the British Isles, gen. eds. Peter Garside, James Raven, and Rainer Schöwerling (Oxford: Oxford University Press), vol. 1, pp. 17, 51, 42.

[2] Id. pp. 52-53, which records 51 copyright receipts. In 1757, a journalist complained that a bookseller-publisher "never paid to any author for his labour a sum equal to the wages of a journeyman taylor." Quoted in id. pp. 50-1. Building craftmen in Southern England, 1736-1773, earned about 24 pence per day, or about £30 for a full year of work. See B.R. Mitchell, British Historical Statistics (Cambridge: Cambridge University Press, 1988) p. 165. The data on occupations is U.S. Census data, collated and discussed in Galbi, Douglas (2003), "Copyright and Creativity: Photographers and Authors."

[3] Raven (2000) p. 85-6, 93; Winas, Robert B. (1975), "The Growth of a Novel-Reading Public in Late-Eighteenth-Century America," Early American Literature, IX.

[4] Raven (2000) pp. 15, 34. Garside, Peter (2000), "The English Novel in the Romantic Era: Consoliation and Dispersal," p. 58, in Garside, Raven, and Schöwerling, vol. 2.

[5] Raven (2000) p. 119; Wittmann, Reinhard (1999), "Was there a Reading Revolution?" in A history of reading in the West, eds. Guglielmo Cavallo and Roger Chartier (Amherst : University of Massachusetts Press) p. 301, quoting J.A. Bergk, Die Kunst, Bücher zu lesen (1799) p. 69 and Karl G. Bauer, Über die Mittel, dem Geschlechstrieb eine unschädliche Richtung zu geben (1791) p. 190; Raven (2000) pp. 17, 114, 101; Lydia Maria Child, The Mother's Book (1831), Ch. VII; Wittmann (2000), quoting, original source not cited; see Dmitri Williams (2003), "The Video Game Lightening Rod: Constructions of a New Media Technology,1970-2000," Information, Communication & Society 6:4 pp. 523–550.

[6] Goodrich, Samuel G. (1857), Recollections of Lifetime (New York: Miller, Orton & Co.) vol. 1, p. 86, quoted in David D. Hall, "The Uses of Literacy in New England, 1600-1850," in William Joyce et al., eds, Printing and Society in Early America (Worcester, Mass.: American Antiquarian Society, 1983) p. 21.

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YouTube's success

How has YouTube succeeded? YouTube makes uploading and sharing videos free and easy. It has hosted some popular high-quality clips and stimulated calls for a copyright-brawl-of-the-millennium. These are well-recognized aspects of YouTube. But consider the outpouring of sympathy for Martin. YouTube has also succeeded as an innovative communications service.

Social networks and communications services are closely related. Robert Young, an insightful industry analyst, recently noted:

communications ultimately serves as the anchor feature and the driver of retention and growth. …when dealing with an online community, that one lasting activity is almost always communications. … Social networks, which are rapidly becoming the portals of the next generation, must place high strategic priority on their communications functionality if they wish to continue their pace of traffic growth, usage, and retention.

Mirroring this remark, Norman Lewis of Orange, a mobile communications service provider, suggested at the Telco2.0 Industry Brainstorm:

Any future applications which do not have a social networking aspect to them will be irrelevant. If we don't understand that, we won't have a business in the future.

YouTube shows communication service providers that video can be important driver of communication. On the other hand, sharing video, like providing VoIP, is a service that many providers potentially could offer. If YouTube doesn't link itself closer to enduring real-world social networks, it may not have a business in the future.

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YouTube and indecency

No nudity, no violence, no profanity -- can you f@$%^&* believe this $#^+! YouTube has declared that the Galbi Brother's Epic 800-Meter Challenge video "may contain content that is inappropriate for some users." So they want all the sports fans to register before they watch the video (also available without registration here and here).

Indecency is a major communications policy issue. How this issue will play out for online video sharing isn't clear. Don't do evil is a good principle both for service providers and users (see truth #6, which extends to users having fun, too).

I sent YouTube a polite email requesting that YouTube reconsider the appropriateness of the Galbi Brothers' Epic 800-meter Challenge video. That was on Friday, March 3. YouTube hasn't yet responded to my email.

I think that respect for users implies that YouTube should have some fair process for reviewing "appropriateness" classifications. The same goes for copyright rule enforcement. This isn't just good business practice -- it's also common decency.

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