Monetizing the mobile social graph
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Transcript of Monetizing the mobile social graph
November 4, 2011
Lisa J. Borodkin
MONETIZING THE MOBILE
SOCIAL GRAPH:Photo-Sharing and Consumer Data
Smart phone is a GPS but it’s also a cameraInstant connectivity to the grid Flickr FacebookInstagramPath… et tu?
THE SOCIAL GRAPH IN PHOTOS
~6b pictures40m users$50m in revenuePremium account (“flickr Pro”)Partnership with Getty ImagesFreemium/IP modelCreative Commons
Flickr’s Business
Photostream
Opt-in
Creative
Commons
Manual Geo-
tagging
Manual Tagging
Manual Permission
From an
intellectual
property point of
view.
Attribution.
Commercial use
Derivative works
Margie’s Candies
Schmap
Flickr Creative Commons PoolPhoto of a minor girlPure likeness caseDidn’t have to prove commercial valueUsed in bus stop ads“Dump your pen friend”Note: a mobile network ad
Susan Chang v. Virgin Mobile(D. Texas 2009)
100b pictures>1b users>$50b valuation
Ad-supported
Facebook’s Photo Business
May 2010
Unique URLS for
Facebook Photos
EFF – Kurt Opsahl
May 2010
Mark Sullivan PC World
Computers, Freedom and Privacy Conference June 2010EFF, PC World also had proposed Bill of
Rights
Social Network User’s Bill of Rights
Open Letter to Facebook
1 Honesty: Honor your privacy policy and terms of service2. Clarity: Make sure that policies, terms of service, and
settings are easy to find and understand3. Freedom of speech: Do not delete or modify my data
without a clear policy and justification4. Empowerment : Support assistive technologies and
universal accessibility5. Self-protection: Support privacy-enhancing
technologies6. Data minimization: Minimize the information I am
required to provide and share with others7. Control: Let me control my data, and don’t facilitate it
unless I agree first
SOCIAL NETWORK USERS’ BILL OF RIGHTS
8. Predictability: Obtain my prior consent before significantly changing who can see my data.
9. Data portability: Make it easy for me to obtain a copy of my data
10. Protection: Treat my data as securely as your own confidential data unless I choose to share it, and notify me if it is compromised
11. Right to know: Show me how you are using my data and allow me to see who and what has access to it.
12. Right to self-define: Let me create more than one identity and use pseudonyms. Do not link them without my permission.
13. Right to appeal: Allow me to appeal punitive actions 14. Right to withdraw: Allow me to delete my account, and
remove my data
SOCIAL NETWORK USERS’ BILL OF RIGHTS
SxSWi 2011
With Jack Lerner
Christina Gagnier
Moderated by
Alex Howard
THE WEBSITE: snubillofrights.com
Some added approval
Manual tagging
from
Social Graph
12 Million users150 million photos100k downloads per week in China aloneiPhone onlyPublic API
Instagram’s Business (2010)
Feed
Effects
Stream
“Popular”
Feeds
Facebook,
Twitter, Tumblr,
Posterous,
Foursquare
Experiences, not
yourself
Mobile only
iPhone (Android
coming)
Followgram.com
Third Party API
Online sites
Instagram briefly
disallowed this in
January 2011
Then permitted
Third-party only
for now
$7.5 Million funding
No revenues
Based on $20M
valuation in Fall
2010
Predictions are
they will sell to a
company that
needs users
Not searchable
on Google
October 2011
Consumers are
the data
Verizon changed
privacy policy
Aggregates data
and
demographics
and sells to
companies
Is it coercive,
given the typical
2-year contract?
Demographics
Phone companies
AT&T AdWorks
Sells targeted
coupons and
advertisements
tracks the kinds of websites a customer visits on their mobile devices
tracks what applications they useuses that data to help third parties target ads
to customers.
Sprint
"collects information about the websites that customers visit and their location”
"may use that information in an anonymous, aggregate form to improve our services.”--T-Mobile privacy policy
T-Mobile
Traditional Civil Check on Privacy Overreaching
Incentivizing Private Attorneys GeneralAllows individuals to aggregate claims Spring 2010: Facebook settles Beacon case
for $9MSept. 2010: Google Buzz $8.5 m settlement
Privacy Class Action Litigation
End of Buzz
Buzz privacy settlement
8.5 million
Plaintiffs sued because of $30 tax on “free” phone
9th Circuit had invalidated class action waiver in arbitration agreement as unconscionable
Savings clause of Federal Arbitration Act Sec. 2
AT&T Mobility LLC v. Concepcion, 563 U.S. __ (Apr. 27, 2011)
5-4
Party lines
April 2011:FAA preempts CA unconscionability re: class waivers
“the times in
which consumer
contracts were
anything other
than adhesive are
long past.” –
Scalia, J. at Slip.
Op. 12
Footnote 6
“States remain
free to . . .
requir[e] class-
action waiver
provisions in
adhesive
agreements to be
highlighted”
Unequal
leverage/bargaini
ng power
Death of Class Actions as a Check on Privacy?
Sticky transaction
costs
Movement limited
by contract
“simple and private”
Real social graph,
not a virtual
network
Android and
iPhone
Expressly limited
to 150 because of
Dunbar’s number
Dunbar’s number
“Our goal is to
continue to help
users connect
more deeply with
the people they
care about.” –
Dave Morin, Path
Co-Founder
150 is the
maximum
network one can
“groom” and
maintain
Path
1 million users
February 2011
turned down
Google’s offer of
$100 million
Funded for $11M
Dustin Moskowitz
Matt Van Horn
150 user limit
Harry R. Lewis
professor of
computer
science, final
lecture in
Quantitative
Reasoning 48,
“Bits,” /Empirical
and Mathematical
Reasoning 12, /
Computer
Science E-2 in the
Harvard
Extension School.
“We can help make that choice through the political process, by watching what laws are enacted by state and national governments. We can help make it by our choices as consumers, by what we say about the features present in, and missing from, the devices and technologies we buy. We can make it by what we have to say about the workings of the institutions and businesses of which we are a part. We can resist those expurgated dictionaries and those Web sites that want to know things you do not want to tell them. We can speak up. We can leave the box on the shelf. We can click ‘I don’t agree.’” – Harry R. Lewis
Leaky Bits
Is there a concept of “social property”Is it consensual?Will the market correct it?Are Terms of Service and Privacy Policies
enough?Class action waivers in every social product?Is there an economy of relationships?Is consumer consent to use of data a fair trade?Who will “organize” offline mobile data (not
Google)?
Who Owns the Social Graph?
Net neutralityISPs throttle access: 10Mb down, 1 Mb upWhat consumers “want”Wireless carriers capping dataPay overage charges to access your social
graph(BTW Sprint will grandfather you in to
unlimited data)
Identity Superhighway
Keep your pen friend.
(cf. Chang v. Virgin Mobile)
Slides will be available atlisaborodkin.com and
slideshare.com
Twitter: @lisaborodkin
THANK YOU!