Getting Rich off Those Who Work for Free
time.com
time.com
When described economically, labor is a resource and is one half of the production function:
P = c K^a * L^b
where a, b, and c are constants. P is production, K is capital, and L is labor.
Youtube provides the capital, their site, and the users provide the labor, the adding of value through their videos.
Granted, the actual division isn't so clear cut in this case, or most cases, but by using these sites, you add value in a way that is fundamentally different than when you watch television.
Either way, I think the equation is changed fundamentally when labour does not need to be incentivized with money. The labour in this case is users, who choose to create value with their own time. How can we have a discussion about efficient inputs of labour when the price tends towards nothing? See, look, I've gone and made my brain hurt!
The equation doesn't change I don't believe, just it's implications. You no longer buy L, you have to earn it with K. Labour isn't free, even when you don't pay for it in money. Its dynamics are just more complicated.
"Clever entrepreneurs and even established companies can profit from this volunteerism--but only if they don't get too greedy. The key, Benkler says, is 'managing the marriage of money and nonmoney without making nonmoney feel like a sucker.'"
When IBM invests in OSS the above is exactly what they're doing: giving back part of their profit to keep everybody happy.