Mash-Up or Cash-Up?

User Generated Content (UCG) has been receiving a lot of press these days. It can take the form of videos, slide presentations, photos, stories or modified commercials. In fact, some media companies and ad agencies are encouraging their “viewers” to modify the original content and share it. Why not? It’s free advertising for the original content, even if it’s in the form of a parody. All press is good press, right?

But what about content providers who are not using content to promote something else, but their content gets used in mash-ups by somebody else? Basically, a mash-up combines multiple sources of Web content (usually something original with something that already exists). Much of the Web 2.0 phenomenon and is based upon the mash-ups. It’s a low cost way to deliver something unique. My company uses this technique to demonstrate local, mobile search using TrueLocal’s search engine (with their permission). We were also using Mapquest mobile maps, until they made some changes that disabled their use.

In our case, we use mash-ups to demonstrate something back to the original content providers. We do not profit from another company’s original or licensed content. That, however, is not the case with all mash-ups and many venture capital firms are actively funding Web 2.0 mash-up, based companies – which could be a pretty risky business.

Content has value. Some content costs a lot to create, some took creativity that the rest of us don’t have, and of course, a lot of content is copyrighted. It appears that some early movers, like Mapquest are making changes to protect their investments and/or content property rights from what some believe is the Web equivalent of squatter’s rights. In the case of Mapquest, they license their maps from companies such as NAVTEQ and I suspect that it’s based on content usage rates. If increased map usage is not being supported by Mapquest advertisers or subscribers, than costs go up without the offsetting revenues - ouch!

I suspect that others will follow Mapquest’s lead - business, is business, after all. Will NAVTEQ and Mapquest alter their business models to support a mash-up resale channel? Will mash-up companies have to put cash up front to continue their business operations? It will be an interesting few years as the technical, legal and financial issues of interactive media usage and distribution get sorted out. It will be interesting to see if map, game, video and other original content providers adopt similar techniques to the digital image “watermark” practice in use today to discourage “for-profit” or mass distribution mash-ups of their content.