To consider how reveue models for Linked Data might work, it is helpful to consider how Linked Data fits into the classification as an economic good. To begin with we will consider the simplest case, Linked Open Data where the dataset has been declared public domain.
- Non-rivalrous
Information, and thus Linked Data, is a non-rival good; a good which can be enjoyed simultaniously by any number of consumers (ignoring technological limitations such as network bandwidth and processing power).
- Durable
Informational goods are also durable; one person's use of a piece of information does not expend that resource and subsequently prevent any others from using it.
- Non-excludable
A Linked Open Dataset which has no restriction on access is a non-excludable good; it is not possible to prevent people who have not paid for it from enjoying access to it.
- Intangiable
Information goods are generally all intangiable goods, good which are themselves not physical objects. Intangiable goods are commonly also nonrival and non-excludable goods.
Goods which are both non-rivalrous and non-excludable are classed as 'public goods' in economic terms. Goods which are both rival and excludable, which are the more common sort of good, are known as 'private goods'.
Public goods are understood to be difficult to charge for directly, as the non-excludability prevents payment for access revenue models. Indeed, economists believe that markets are neither a practical or efficient means of allocating pure public goods.
Naturally, producers and sellers of public goods have a vested interest in ensuring their continued income. Historically, technology and legislation have been the methods used to achieve this; attempting to make what was a public good into something which behaves more like a private good, by making it rival and/or excludable. Digital Rights Management software and copyright law are examples of these technololical and legal methods.
Alternatively, content holders may seek revenue through other means, to offset the impact of freeloading. Advertising is perhaps the most common method, whereby paid adverts are placed alongside or sometimes integrated with the content. Sponsorship is another method, where costs are covered by from investment from another party which does not seek advertising in return, for example, government funding.
This post elaborates on our arguments on the economic nature of Linked Data, from our paper on Linked Closed Data which we recently posted about.