While I think that Paul Kedrosky is on to something in his recent post on the release of the new flickr camera ratings page, I disagree with his comment:
"Give the software away, so to speak, and sell the data. Its day is coming."
I think privacy concerns over the use of user-generated data in general, and metadata in particular may cause a backlash and user revolt if you simply give away the software and sell the data. Isn't this what all the web2.0 "beta" sites do today? Give away their services for free and sell their usage data to spammers (uhhh I mean ad agencies) and seed their sites with Adsense / Adwords to generate enough revenue to keep them afloat?
How much data about users and user behavior is too much to collect? Exploit? Sell? Privacy and identity theft are the biggest concerns I have about exposing my data on the net today.
Sites like
Wesabe and the trend that we are seeing here with Yahoo's use of Flickr's user-generated metadata may drive new business models, but I think that there is a fine line that most intelligent users who actually read EULAs and privacy agreements are probably going to be a bit reluctant to cross.
The cost of giving up your identity and privacy information versus the perceived benefits of doing so (e.g. the wesabe community approach) are a debate that will wage on for some time. As an example of putting a value on my personal [meta]data and identity, I recently chose to NOT fill in and print out a $3 off online coupon for the Seattle Ski Expo this past weekend in favor of NOT having to give up my identity to get a lousy $3 off the entry fee.
I like to think that my identity and [meta]data is worth more than $3.
UPDATE: Thanks to Marc @ Wesabe for the detailed commentary and clarification on Wesabe's model and
Data Bill of Rights.