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DYNAMICS OF VIRTUAL WORK
Series Editors
Ursula Huws
Hertfordshire Business School
University of Hertfordshire
Hatfield, UK
Rosalind Gill
Department of Sociology
City, University of London
London, UK
Technological change has transformed where people work, when and
how. Digitisation of information has altered labour processes out of all
recognition whilst telecommunications have enabled jobs to be relocated
globally. ICTs have also enabled the creation of entirely new types of
‘digital’ or ‘virtual’ labour, both paid and unpaid, shifting the borderline
between ‘play’ and ‘work’ and creating new types of unpaid labour con-
nected with the consumption and co-creation of goods and services. This
affects private life as well as transforming the nature of work and people
experience the impacts differently depending on their gender, their age,
where they live and what work they do. Aspects of these changes have
been studied separately by many different academic experts however up
till now a cohesive overarching analytical framework has been lacking.
Drawing on a major, high-profile COST Action (European Cooperation
in Science and Technology) Dynamics of Virtual Work, this series will
bring together leading international experts from a wide range of disci-
plines including political economy, labour sociology, economic geogra-
phy, communications studies, technology, gender studies, social
psychology, organisation studies, industrial relations and development
studies to explore the transformation of work and labour in the Internet
Age. The series will allow researchers to speak across disciplinary bound-
aries, national borders, theoretical and political vocabularies, and differ-
ent languages to understand and make sense of contemporary
transformations in work and social life more broadly. The book series will
build on and extend this, offering a new, important and intellectually
exciting intervention into debates about work and labour, social theory,
digital culture, gender, class, globalisation and economic, social and
political change.
Corporate
Capitalism’s Use of
Openness
Profit for Free?
Arwid Lund Mariano Zukerfeld
Linnaeus University National Scientific and Technical Research
Växjö, Sweden Council (CONICET)
Buenos Aires City, Argentina
Södertörn University
Huddinge, Sweden
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland
AG 2020
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of
illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and trans-
mission or information storage and retrieval, electronic adaptation, computer software, or by similar or
dissimilar methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information in this book
are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or
the editors give a warranty, expressed or implied, with respect to the material contained herein or for any
errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional
claims in published maps and institutional affiliations.
This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Acknowledgments
We started to plan this book in 2017. Both of us were invited for a short-
term scholarship at Westminster Institute of Advanced Studies (WIAS) at
the University of Westminster in London, headed by Christian Fuchs.
The idea of writing this book started to take shape in late May when we
took shelter from some heavy rain in a restaurant in Covent Garden. The
book’s first four-square saw the light of day there and then; it was to be
followed by many more.
During our scholarship we had started to investigate various themes
connected to this book, like the ideological uses of openness in the open
data movement, and the business model behind online academic courses.
We were not alone in our discussions. With us was a group of talented
researchers with similar interests. Huge thanks go to Pasko Bilic, Sebastian
Sevignani, Ben Birkinbine and Paschal Preston for all the inspiring dis-
cussions about digital media’s relations to society, and the radical politics
concerning both commons and corporations! To be sure, it was Christian
who made it all possible. Beyond his theoretical influence, his endeavors
coordinating institutional initiatives such as conferences, the Triple-C
journal, UWP Critical Digital and Social Media Studies, WIAS, and spe-
cifically the fellowship program that we had the honor and privilege to be
part of are impossible to overstate. Denise Rose Hansen, finally, ran the
everyday administration of the institute in a very generous atmosphere,
and with great commitment.
v
vi Acknowledgments
The hard thing about writing a book when you live in different parts
of the world is that, at some point in time, you need to meet and work
out the details together. With this we had great help from the European
Sociological Association’s Research Network 18 that facilitated a meet-up
in Croatia during its mid-term conference in Zagreb, during which we
were able to test our ideas on a wider audience. We received valuable
feedback from Thomas Allmer, Eran Fisher, Jernej Prodnik and Arnon
Zangvil, among others, to whom we would like to express our gratitude.
Arwid’s trip to Buenos Aires in February and March 2019 was made
possible by economic support from the Department of Cultural Sciences
(Linnaeus University) for international pedagogical relationships. We are
both grateful to the Latin American Faculty of Social Sciences, particu-
larly to Valentina Delich and Andrea Rizzotti, who invited us to present
our work in progress to an engaged audience in March 2019.
There are other institutions, besides those already mentioned, whose
support has been crucial to completing this project. This book was writ-
ten during a sad period for Argentina, in which a neoliberal government
has not only impoverished the people and indebted the country to finance
capital flight, but also specifically cut funds drastically for science and
technology. In a couple of years, scientists´ wages lost more than 30% of
their purchasing power, funding already assigned for research was put on
hold and hundreds of young scientists were excluded from the public
system. It is within this context that Mariano feels particularly grateful
and privileged for having had the support of the National Agency of
Scientific and Technological Promotion to travel to Europe to work with
Arwid on this book. Previous trips were only possible thanks to
Maimonides University and specifically the support of Adrián Giacchino,
to whom Mariano is extremely grateful.
The Center for Science Technology and Society (Centro CTS headed
by Pablo Kreimer) and within it the team Technology, Capitalism and
Society (e-TCS coordinated by Lucila Dughera) hosted a couple of semi-
nars in Buenos Aires where drafts of Chap. 1 and the conclusions of this
book were discussed. We are grateful to all the researchers who partici-
pated in those meetings and gave us valuable insights.
Many more people deserve to be acknowledged in relation to the work
on this book. In relation to the case studies, Arwid would like to
Acknowledgments vii
1 Introduction 1
1.1 Early Promises and Expectations 1
1.2 Ideological Distortions Under Capitalism: Californian
Ideology Turning into Openness Ideology 4
1.3 Profit from Openness Versus Profit from Enclosures
Models 7
1.4 What’s Wrong with Profit from Openness? 9
1.5 Chapter Outline 16
References 21
xi
xii Contents
Index323
List of Figures
Fig. 2.1 Playing, gaming, working and laboring. (Source: Lund, 2017b,
p. 113)60
Fig. 2.2 Actors and flows on profit from openness platforms. (Source:
Authors’ elaboration) 95
Fig. 5.1 YouTube Ad revenues (2010–2018, billions of USD). (Source:
Author’s elaboration based on Statista.com, Business Insider
Intelligence and Gutelle, 2018) 205
Fig. 5.2 Actors and flows in YouTube profit from openness business
model. (Source: Author’s elaboration) 212
Fig. 5.3 Median views per uploaded video. (Source: Bärtl, 2018) 220
Fig. 5.4 Share of views of YouTube videos between top 3% channels
and bottom 97% of channels, by year. (Source: Bärtl, 2018) 221
Fig. 6.1 Actors and flows in Coursera’s business model. (Authors’
elaboration) 252
Fig. 6.2 Options to access a Coursera course. (Source: Coursera.
Available at: https://www.coursera.org/learn/chemerinsky-
individual-rights)266
xv
List of Tables
Table 1.1 Profit from openness and profit from enclosures business
models8
Table 2.1 Typology of goods according to subtractability and
excludability69
Table 2.2 Typology of platforms according to centralization and aims 78
Table 2.3 Typology of platforms 84
Table 3.1 A selective sample of Linux distributions 117
Table 3.2 Red Hat products and prices 127
Table 3.3 Red Hat’s revenues, profits and profit margins 129
Table 3.4 Red Hat Market segments 130
Table 4.1 Dissemination forms within the OA landscape 165
Table 4.2 Four main publisher’s mix of hybrid and full OA journals 168
Table 4.3 Revenues of Springer Nature, Wiley and RELX group 169
Table 4.4 RELX/Reed Elsevier revenues, profit and profit margins 172
Table 4.5 Revenue and profit of business segments 173
Table 5.1 Top 10 of audiovisual content websites 200
Table 5.2 Ranking of YouTube 16 most viewed channels, by content
category, country and language 202
Table 5.3 Ranking of Top 10 YouTube channels by views in January
2019203
Table 5.4 Top 5 countries by YouTube traffic (January 2019) 204
Table 5.5 Most viewed videos on YouTube 204
Table 5.6 Most viewed ads on YouTube in 2018 206
xvii
xviii List of Tables
Table 5.7 Streaming platforms per-stream rate and total plays needed to
earn a minimum wage (2018) 219
Table 6.1 Top 5 MOOC platforms by enrollment in 2018 243
Table 6.2 “Monetization” strategies of MOOCs 245
Table 6.3 Coursera revenues, funding and “learners”, 2012–2018 247
Table 6.4 Coursera’s products and prices 248
Table 7.1 Distinctive features of each case study 280
Table 7.2 Licenses: non-privative licenses, by merits and limitations 295
Table 7.3 Platforms for commoning 313
1
Introduction
1
The idea of a new economy relates to a plethora of post-Industrial theories on the advent of an
information age or an informational society (e.g. post-Industrialists like Piore and Sabel, the most
capitalist-friendly wing of the French regulation school). These theories are critically summed up
by Frank Webster in his book Theories of the Information Society (Webster, 2014). His main critique
is that all advocates of the assumption of a disruptive change in history and a dramatic transition
from an industrial society to an informational society base this on quantitative changes (like the use
of information or the number of jobs in information-rich sectors, none of which are easy to define)
at some point inevitably leading to a qualitative change. Against this stands the critique of pre-
dominantly orthodox Marxists, who argue that in reality we are only getting more of the same old
capitalism, and that society has always been an information society (Webster, 2014). Regarding
Marxism it can be pointed out that thinkers like Ernest Mandel and many autonomist Marxists
also stress the disruptive social changes brought about by digital technology, although they still
understand contemporary society as capitalist (Hardt & Negri, 2000; Mandel, 1974, 1975).
1 Introduction 5
Web 2.0 is the business revolution in the computer industry caused by the
move to the internet as platform, and an attempt to understand the rules
for success on that new platform. Chief among those rules is this: build
applications that harness network effects to get better the more people use
them. (O’Reilly, 2006)
Table 1.1 Profit from openness and profit from enclosures business models
Profit from enclosures Profit from openness
Aim Profit from commodities that can be copied at close to zero
costs
Means Pull up the price of Push down the price of inputs
outputs
Main source of Waged workers producing Unwaged producersa of
value software and content software, content and data
Source of Fees Targeted advertisement,
revenues certifications, related services.
Legal framework Privative exercise of Open and Copyleft licenses,
copyright contracts, trademark law
Value-producing Labor time Leisure time
time
Ideological Property, ownership, Openness, freedom, sharing,
discourse topics individuals, communities
Author’s elaboration, based on Zukerfeld (2014)
In Chap. 2 we will introduce the more accurate concepts of users, contribusers
a
Both models need to deal with a troubling situation defined by the fact
that digital commodities can be legally or illegally copied with costs
approaching zero. Whereas the profit from enclosures model pays for its
inputs (waged labor) and tries to collect fees for its outputs (enclosed
commodities), profit from openness tends to give up on paywalls for
accessing digital information. It simply opens up some of the content and
focuses, on the one hand, on getting most of the software, content and
data from voluntary, unpaid contributions mostly carried out during lei-
sure time, and, on the other hand, on making money through advertising
and content-related services. The profit from openness model rejects the
privative use of copyright law, but draws on other intellectual property
tools. While the profit from enclosures model relies heavily on a rhetoric
of individuals and ownership, which echoes the mantras of industrial
capitalism, profit from openness discourses are all about sharing, com-
munities, freedom and openness. However, it would be wrong to believe
that in profit from openness everything is for everyone.
1 Introduction 9
2
Even within the realm of critical theory there is no consensus on the relation between exploitation
and alienation that takes place on “social media”. Several authors (Andrejevic, 2011; Fuchs, 2010;
Fuchs & Sevignani, 2013) assert that exploitation and alienation are high. Others contend that
increased exploitation is only possible at the expense of reducing alienation (Fisher, 2012; Rey,
2012), while yet others stress that alienation is high but exploitation is not necessarily so (Reveley,
2013).
10 A. Lund and M. Zukerfeld
will show how companies critically depend on these flows in order to make
money. A remarkable share of these companies’ income and profits come
from unremunerated activities (whether you call these labor or not) carried
out by millions of people (Andrejevic, 2015; Fisher, 2012; Fuchs, 2012;
Moulier-Boutang, 2011; Petersen, 2008; Terranova, 2000; Zukerfeld,
2017a). Remarkably, this exploitative underbelly of openness has been
practically ignored for several years, only gaining some attention in the last
decade. This is probably related to two phenomena: firstly, most people
tend to believe that exploitation only takes place if the exploited is suffer-
ing or not willing to work. Exploitative relations are portrayed as those
taking place in sweatshops where sad and miserable workers toil away in
drudgery for long hours. Since in the profit from openness model people
are freely and seemingly enthusiastically engaging with these companies,
the reasoning goes, these relations are far from exploitative. But this is a
misunderstanding. Exploitation is defined as an objectively—though
sometimes difficult to measure—asymmetrical and to some degree volun-
tary exchange between exploiters and exploited actors.
This does not necessarily have anything to do with subjective experi-
ence or working conditions. Moreover, it does not depend on the repre-
sentation that exploited people have of those exchanges. It does not
matter if you think that you are making a hell of a deal by receiving lots
of cool apps in exchange for your worthless pics, data and watching some
well-targeted ads. At the end of the day, if companies are making money
from you, you are being exploited, whether or not you enjoy the process,
suffer or do not care about it. This is not a particular feature of the profit
from openness business model or cognitive capitalism. As capitalism in
all its stages requires and prides itself on having formally free workers,
these workers must not only tolerate exploitation (as serfs and slaves did
as well) in order to maintain capitalism, but are also required to represent
these relations both as a consequence of an alleged free choice and as hav-
ing a non-exploitative character. They are expected to embrace the social
order that exploits them.3 It is precisely here, of course, where ideology
3
In other words, if you are truly free to choose between participating or not in an exchange of goods
and services, and you realize that that exchange is unbalanced in favor of the other party, it is very
likely that you would lean toward not participating. To engage in these relations, your conscious-
ness needs to believe that the exchange is fair enough.
1 Introduction 11
works its magic. Certainly, there are different kinds of exploitation and
business models, and the ideologies bolstering them vary. However,
whereas the ideological underpinnings of industrial capitalism (revolving
around concepts such as “ownership”, “individual”, “rationality”) have
been extensively discussed in critical theory, the workings of profit from
openness ideology have barely been touched on. For this reason, the
exploitation-ideology axis lies at the heart of this book.
Secondly, exploitation became an issue only recently, even for critics of
profit from openness models, because the most pressing concern for the
public conversation was surveillance. This is due to the fact that liberal
agenda setting is more strongly inclined toward discussing privacy issues
(i.e. defending individual ownership) than concerns about asymmetrical
exchanges. Of course, surveillance is connected with exploitation (and
alienation as well, as we shall see) through the abuse of personal data by
companies. But the main concern of for-profit companies is not surveil-
ling—important as it is—but making money. Thus, despite “surveil-
lance” being a partial but correct answer to the question of what is wrong
with the profit from openness business model, this book does not focus
on it. This is due to the fact that the topic has been tackled abundantly
(e.g. Fuchs, Boersma, Albrechtslund, & Sandoval, 2011; Zuboff, 2015,
2019) and that only some forms of profit from openness are based on
surveillance, that is, social networks.
In turn, the concept of alienation describes at least two kinds of inter-
related phenomena. Firstly, the sensations of estrangement, meaningless-
ness and powerlessness arising from activities, products and relations that
are supposed to be essentially meaningful and empowering. Secondly, the
fact that this alien power that faces us as a hostile power has been pro-
duced by us (Jaeggi, 2005).
There are multiple ways of unveiling forms of alienation that take place
beneath the surface of participation, openness and freedom. Drawing on
Marx’s 1844 Manuscripts and Grundrisse, authors such as Faucher
(2018), Fuchs and Sevignani (2013), and Jaeggi (2005) extrapolate facets
of alienation described by Marx to “social media”. By simplifying and
combining both Marx’s formulations and these authors’ contributions,
we can categorize four kinds of alienation:
12 A. Lund and M. Zukerfeld
3. Alienation from the product of labor (Marx, 1844, 1857–61): data and
content are two kinds of products relinquished, as the platform has
the rights to modify or distribute them (Faucher, 2018, p. 66).
Contrary to industrial alienation, subjects retain copies of their prod-
ucts and can access them. This is due to the particular material bearer
of these products, which is digital information. In this specific regard,
alienation from the product is lower than in industrial production.
However, there is yet another “product” for which alienation is com-
plete, and even concealed, in the profit from openness model: human
attention. As we shall discuss, flows of ad-consuming-attention con-
stitute a critical resource of this model. Attention cannot be copied: it
is limited and scarce. Noticeably, the alienation of human attention
through ads and content works in a different and even inverse way to
the alienation of an industrial product. While the latter is associated
with dispossession, the former relates to the inoculation of ads and
content—in the sense described by Debord (1967). This estrange-
ment takes place within human subjectivity.
4. Alienation from oneself (Marx, 1844, 1857–61) and from other humans
(Marx, 1857–61). In Marx’s sense, alienation from oneself and others
is related to the loss of the essential meaningful activity (work) that
allows humans to create themselves, and its subsumption under its
alienated counterpart (capitalist labor). In the profit from openness
business model, alienation from oneself takes different forms. It is in
play and leisure time where the alienation takes place.
Liking, commenting, uploading, sharing, creating communities,
making friends through platforms: all might seem like acts of freedom
and communicative action, that is, de-alienating activities and, more-
over, acts through which individuality is affirmed. However, since all
of them are mainly, if not completely, means for predicting and mold-
ing future conducts through surveillance, they result in reducing the
autonomy of the subjects vis-à-vis companies. For instance, individual
profiles, pics and so on, end up being thought of as marketing strate-
gies rather than merely self-reflecting gestures.
“Communities” and “friends”, that is, forms of recognition (Hegel’s
Anerkennung, see Ricoeur, 2005) essential for non-alienated human
beings only take form as fetishized commodities through the m ediation
14 A. Lund and M. Zukerfeld
4
As Negri (1989) and others pointed out through the concept of real subsumption of labor under
capital.
1 Introduction 15
cles were published in about 2500 journals this year (RELX Group,
2018, pp. 14–15; Tennant, 2018, p. 7). The claim of being a leading
open access publisher does not, on the other hand, mean that this is the
company’s main income stream. The company had 30 journals fully based
on OA and Article Processing Charges (APCs) in 2013, whereas 1500
journals were hybrid journals (Reed Elsevier, 2013, p. 14) based on sub-
scriptions, but also offering an OA-option with connected APCs. The
proportions are similar today. The hybrid journal is a dominant strategy
for big business acceptance of OA (Bosch & Henderson, 2017) and
hybrid journals have historically allowed “double-dipping”: charging
both subscription fees and APCs for the articles published in the journal
(Suber, 2012, p. 141). Elsevier has a reputation of demanding exorbi-
tantly high prices for their subscriptions, and in 2012 an academic boy-
cott campaign was launched against the company which continues till
today (Aaronson et al., 2012; Wikipedia contributors, 2018). Elsevier
finally uses the OA dimension ideologically in a fairly straightforward
way of open washing, trying to downplay and distort the fact that the
company’s major income comes from subscription fees, and that it has
actively worked against OA historically.
Chapter 5 opens with a discussion of MOOCs (massive open online
courses). In 2018 there were some 101 million enrolled “learners” in one
or more of the 11,400 courses offered by these platforms (Shah, 2018a).
While there are several not-for-profit MOOCs, many of them are aimed
at making money, and Coursera, our case study, is the leader of the pack.
The company currently has some 37 million learners and made roughly
USD 140 million in revenues in 2018 (Shah, 2018b). Revenues come
from charging individuals, companies and universities for different ser-
vices (such as certifications on the completion of freely accessible courses)
(Bowden, 2018; Kolowich, 2013; Shah, 2018b). Profits are to some
extent based on unpaid knowledge delivered by teachers through online
classes. In most cases teachers are paid once for these classes, and receive
no additional payment at all despite the fact that they are streamed several
times to huge numbers of “learners” (Hoyt & Oviatt, 2013; Sanders &
Richardson, 2002). Some 900 universities partner with Coursera and are
20 A. Lund and M. Zukerfeld
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1 Introduction 25
Fig. 180.—Photograph of the same subject as Fig. 179, taken six days later.
CHRONIC PERICARDITIS.
PSEUDO-
PERICARDITIS.
PHLEBITIS.
ACCIDENTAL PHLEBITIS.