DST14600 - User Generated Content

The second condition in the social media definition considers whether content generated by users is a significant feature of the service provided to other users.

What is user generated content?

The legislation does not define “user generated content”. In HMRC’s view, the legislation is making an implicit distinction between content provided by users and content provided by the business. The important point is who is generating the content and the circumstances or process involved in generating it. It will be user generated when a user is responsible for creating or uploading the content onto the online service.

In contrast, content which is commissioned or chosen for display by the provider of the online service will not be user generated content.

The form of the content is unimportant. Any type of digital media or information could be user generated. This includes:

  • Text published or displayed on the service.
  • Images, audio or video uploaded onto the service.
  • Live streaming of audio or video.

The nature of the content will also not normally be important. However, in some cases, it may be more difficult to disentangle the content provided by the business and content provided. In these cases, it can be helpful to refer to generally understood concepts of what is meant by user generated content. These include the following characteristics:

  • The content is usually not of a professional nature
  • There is effort or creativity from the user in generating the content
  • The content is published online

Significant feature

The legislation does not define significant feature. It is a qualitative test which looks at the importance of user generated content to the service provided to users and the role user content plays in enhancing the service. The relevant question therefore involves understanding the reasons why users use the service and the nature of the service provided to users. If the service is noticeably enhanced by content provided by users, the condition will be satisfied.

It should normally be clear whether user content is a significant feature of the service. Most social media services rely on user content to increase user engagement with the service and will have features designed to encourage users to post or create new content on the service.

The following indicators are useful to consider in less clear-cut cases:

  • Whether user content is distributed publicly or semi-publicly on the online service or alternatively is only peer-2-peer
  • The relative quantity and role of user content compared to content provided by the business

Social media services often rely on user generated content to drive network effects; they will consequently encourage users to share content with a wider audience or within different user communities to build a wide and diverse range of content on the platform. This user content is then instrumental to attracting new users and increasing the depth of user engagement with the service – users will often respond to their content receiving positive feedback from large numbers of people for instance. In contrast, user content is much less likely to be significant on services which only enable closed communication between individuals.

It can also be helpful to compare the role of user content with the content provided by the business; particularly in cases where the online service displays both user generated content and content commissioned or produced by the group itself.

The condition is less likely to be satisfied where the majority of the content relates to content created or acquired and distributed by the business and user content is in substance limited to discussion about the business’ content. In contrast, the condition is more likely to be satisfied where the business’ principal role is to provide the infrastructure or platform for users, professional or otherwise, to populate with content and provides only limited content on that platform.

Although this comparison is informative, it’s important to remember the condition only requires that the user content is significant. It does not need to be the most important form of content on the service.

If the central part of the business is about developing the tools for promoting and monetising user-generated content and interaction with that content, rather than developing content themselves or taking decisions on what content to acquire, the online service will be a social media service. That will be the case even if the provider acquires some professional content or enters into revenue splits with users whose content drives significant traffic.