Page 79 - IMDR Journal 2025

Research Article
al., 2016)Furthermore, the rise of pay walling, where certain Future Trends & Opportunities
content or features are locked behind a paywall, can limit the The rapid growth of user-generated content platforms has
accessibility of user-generated content, particularly for led to the emergence of innovative microtransaction models
individuals with disabilities or those from underserved that offer new revenue streams for content creators and
communities. In the context of the creator economy, this can platform owners. As the freemium business model becomes
exacerbate existing inequalities and prevent marginalized
more prevalent, the role of free users in driving growth and
groups from fully participating in and benefiting from the
value capture opportunities has become increasingly
platform. Regulatory bodies have begun to address these important. (Günzel-Jensen & Holm, 2015) Content
concerns, with the European Union's Digital Services Act providers are now leveraging these platforms to diffuse their
serving as a prominent example. The proliferation of content more effectively by paying fees for preferential
microtransactions in user-generated content has given rise to treatment, which has created a competitive environment as
significant ethical and regulatory concerns around consumer they vie for viewer attention. (Pellegrini et al., 2013)This
sentiment and potential backlash. Recent studies have shift towards platform-oriented self-employment markets
highlighted the moral and ethical complexities underlying has provided creative workers with new avenues to
youth's engagement with digital media, including their showcase their expertise and monetize their unique talents.
perspectives on the use of social networks, massive While some creators may have initially been hesitant to
multiplayer games, and other digital platforms. One key share their know-how for free, they have come to realize the
finding is the prevalence of individualistic thinking, where benefits of using these platforms to attract more viewers and
users' primary concerns center around personal gain and
establish new revenue streams. (Liang et al., 2021) The rise
gratification, rather than broader ethical considerations.
of patents related to the monetization of online and digital
(Flores & James, 2012) This poses a challenge for game content has further enabled creators to make a living through
developers and content creators, as they must navigate the tips, donations, project-based contracts, and even
tension between maximizing user engagement and revenue crowdfunding-supported startups or local studios. (Liang et
through microtransactions, and addressing the ethical al., 2021).As the microtransaction landscape continues to
implications of such practices. evolve, there are several key trends and opportunities worth
Concerns have been raised around the potential for exploring. As platforms built around user-generated content
predatory and manipulative microtransaction models, continue to gain traction, the way microtransactions fit into
particularly those targeting minors or vulnerable these ecosystems is also expected to change. One possible
populations. The affective economy of these in-game direction could be a stronger focus on creating fairer, more
purchases, where they are framed as "fair" and "free-to- sustainable revenue opportunities for content creators.Right
play," can mask the underlying exploitative nature of the now, many platforms heavily depend on microtransactions,
business model, leading to a sense of consumer backlash and where users can buy virtual items or upgrades that promise
distrust. (Jarrett, 2021)As the industry continues to evolve, to enhance their experience or give them exclusive access.
there is a pressing need for greater transparency, consumer But this approach often creates an uneven playing field —
education, and regulatory oversight to ensure that content creators who can afford to invest in premium
microtransactions in user-generated content align with features tend to have an advantage over those who
ethical principles and do not unduly exploit or harm users. can’t.Looking ahead, as platforms work to keep users
The growth of microtransactions in user-generated content engaged and loyal, they might introduce policies that better
platforms has raised significant ethical and regulatory support a diverse range of creators. This could include
concerns. From a legal standpoint, the autonomy of these experimenting with new revenue-sharing models, offering
platforms has seldom been challenged, with the distinction more transparent and fair monetization tools, or exploring
between intermediaries and creators becoming increasingly alternatives like crowdfunding and subscription-based
blurred. (Leqi et al., 2021) This erosion of the intermediary- models (Liang et al., 2021).There’s also growing awareness
creator boundary has profound implications for the around how microtransactions can affect the overall user
sufficiency of current regulations.One key concern is the experience and the quality of content. As users become more
potential exploitation of vulnerable user groups, such as conscious of how these features might disrupt or distort the
children, who may be exposed to manipulative monetization content landscape, platforms may face increasing pressure
practices. The ability of social media influencers to sway the to introduce clearer rules or restrictions — especially when
opinions and purchasing behavior of their followers, often it comes to practices that feel exploitative or misleading.
without clear disclosure of sponsorship, poses a risk to (Fenwick et al., 2019) (Burgess & Woodford, 2014)As the
consumer protection. (Goanță & Ranchordás, 2020) The landscape of user-generated content continues to evolve,
regulation of these practices has proven challenging for new opportunities are emerging for brands and content
national regulators, as influencers may disregard existing creators alike. One exciting development in the digital space
advertising guidelines.These issues highlight the need for is the growing use of microtransactions within user-
policymakers to re-evaluate the regulatory framework generated content (UGC) platforms. Microtransactions
governing user-generated content platforms. (Leqi et al., small, in-app purchases that let users buy digital goods or
2021) Proposals for standardized compliance mechanisms, services have already seen massive success in the gaming
such as a "Legal Compliance API," could empower world. But now, this model is expanding beyond gaming and
regulators to more effectively monitor and enforce relevant finding new applications across different UGC platforms,
rules, particularly those aimed at safeguarding vulnerable opening up fresh opportunities for content creators to earn
users. (Goanță et al., 2022)

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