Scenario one (free content/ services in an open and free environment) is characterized by bottom-up developments. Users are active participants, creators, producers and distributors. Firms have no clear revenue models and therefore play a small part in the innovation process.
Scenario two (users pay for content/services in an open and free environment) has the same characteristic as scenario one, considering the open and free online environment. But contrary to scenario one, new revenue models have been developed that let content and service providers (sometimes also users themselves) earn money.
Scenario three (free content/ services for users in a closed and protected environment) user communities are employed as marketing machines. Users act as gatekeepers and rate and tag content. Innovation is a continuous process and businesses act as facilitators and content providers.
In scenario four (users pay for content in a closed and protected environment) the main characteristic is the utilization of strict copyright protection. Businesses are very scared for copyright infringement, and users fear for their privacy. Users and businesses are strictly separated and innovation is hampered by harsh copyright protection.
