This document discusses the shift from a traditional media industry model to one where consumers are actively participating in content creation and distribution. It outlines three phases of the creative industries and how the roles of audiences have changed. Consumers have become "prosumers," "multipliers," and "media-actives" who help shape media. This new dynamic requires industries to consider consumers' sense of a "moral economy" and deal with their participation either through a prohibitive or collaborative approach, with tensions arising from abrupt shifts between the two. The collaborative approach welcomes fan participation while the prohibitive sees consumers as potentially "immoral" for profiting from industry content.

1. Kelsey VellaThe Shift to Consumer-Created Content “The People Formally Known as the Audience”

2. The Phases of “Creative Industries”Phase 1: Industry, outputs, and clusters Industries based on individual creativity, skill, and talentPhase 2: Markets, inputs, and servicesShifted in order to measure value added by creative inputs especially in the services areaPhase 3: Knowledge culture, human capital, and citizen-consumersThe rise of consumer-created contentSocially-networked consumers

3. Redefining the “Audience”The audience is no longer separate“Loyals” – stressing the value of consumer commitment“Media-actives” – want to reshape media content“Prosumers” – consumers produce and circulate media“Multipliers” – proliferators of value and meaningsAudiences have become producersParticipants in media

4. “Moral Economy”“All participants must feel that the involved parties behave in a morally appropriate fashion” When consumers feel wronged, they speak/act outIllegal music downloadingReflect belief that record labels were ripping off consumers and artistsMedia industry had to find new ways to approach relationship with consumers

5. Dealing With Consumer ParticipationWeb 2.0 provides few models for consumer relationshipAdopted Two ApproachesProhibitionist ApproachCollaborative ApproachTensions with consumers occur when there is an abrupt shift between the two

6. Prohibitive ApproachMedia companies risk averseNeed to make money Fearful consumers might take something they made and profitWorried about loss of controlSee content as commodityMoral EconomyConsumers are the ones acting “immoral”

7. Collaborative ApproachIncludesWelcomed participation by audiences, fansEx. Star Trek fan movie makers, video game companies allowing players access to development toolsiStockphoto, InnoCentive – pay consumers for their design ideasChanged the way viewership was measuredViewers watching a favorite series more likely to watch ads“Long tail”Focus on niche audiences and “buzz” marketing

8. QuestionsWho do you believe to be the “immoral” party? Consumers, the industry, or both?Where do you feel the industry is headed if they do adapt to the collaborative approach? And what about if they don’t?