A Framework for Linked Data Business Models

Abstract

Linked Data (LD) are emerging as the potential “killer application” of the third Web era. If they actually become mainstream in the next years depends on how useful will be for the average User. In economic terms, the creation of successful business models to place LD in the market and the resulting revenue streams will support further developments. In this article, the major sources of value and a business model taxonomy for LD are identified. Network effects exist in LD by enabling Web users to build bidirectional and massively processable interconnections among online data and second, these data are critical enablers for existing infrastructure in the government and business spheres. The proposed eleven distinct business model categories are: Public service, Community service, Intelligence, Subscriptions, Sponsorships, Advertising, Marketplace, Affiliate program, Multi-sided platforms, Traffic generation and Data branding. Section I briefly introduces the advent of LD in the Web ecosystem. The next section is about the main question, which is addressed in the present paper. Related literature is reviewed in Section III. The encompassing value source of the Web is specified for LD in Section IV. Section V describes a proposed framework for LD business models and Section VI concludes.

Keywords: network externalities, value creation, infrastructure, two magics of Web science

JEL Classification: M29, L86, L81