Observing the Market Value of Information

Observing the Market Value of Information
The Commodity Expanse (massive market and open licensing, but zero exclusivity and diluted pricing). Author, using Gemini

Question: What would others realistically pay to use this data?

Level 1 dimensions

  1. Observed pricing / deals
  2. Addressable market size
  3. Exclusivity vs competition
  4. Licensing model and constraints

Level 2 indicators and observables

  • Observed pricing / deals
    • Actual licence fees earned to date (per record, per API call, per year).
    • Benchmark prices for similar datasets in the industry (data brokers, partners).
    • Implied data value in bundled contracts (e.g. uplift in SaaS pricing when data is included).
  • Addressable market size
    • Number of potential licensees (industry participants, partners, adjacent sectors).
    • Regulatory or contractual restrictions on who can buy/use the data.
  • Exclusivity vs competition
    • Number of competing or substitutable datasets available externally.
    • Degree to which the data is differentiated (granularity, timeliness, coverage).
    • Market perception: do partners regard the data as must‑have or nice‑to‑have?
  • Licensing model and constraints
    • Can it be licensed non‑exclusively, or only to a few counterparties?
    • IP ownership and contractual rights to monetise.
    • Privacy/ethical constraints that limit external monetisation.

How to use

  • Score MVI based on: real revenue now, credible revenue potential, and exclusivity.
  • A dataset with high IVI/BVI but no legal right to licence externally may have high EVI but low MVI.

MVI scoring rubric (1–5)

Here’s a concrete 1–10 scoring rubric for MVI (Market Value of Information), consistent with the Infonomics definition: “revenue created through the barter, trade, or sale/licensing of information, or the price it would command in a data marketplace.”

Assume MVI is the weighted sum of four dimensions:

  • Actual realised external value – 35%
  • Marketability / demand – 25%
  • Pricing power / unit economics – 20%
  • Rights / constraints – 20%

1. Actual realised external value (weight 35%)

Question: How much revenue or tangible value is already being realised from external use of this data?

Score

Descriptor

1 – 2 None

No external monetisation, barter, or observed pricing. Data is used only internally; no credible external demand identified yet.

3 – 4 Minimal / experimental

Small‑scale pilots, one‑off deals, or ad‑hoc barters. Revenue or value in kind is negligible relative to the size of the dataset or business.

5 – 6 Emerging

Some recurring external revenue (or consistently used for barter/discounts) from a few customers/partners. Still a side‑business vs core line.

7 – 8 Significant

Meaningful, recurring revenue stream, or regular use for commercial advantages (e.g. better terms) with multiple counterparties. Shows up as a recognisable data product or line of business.

9 – 10 Major line of business

Substantial, growing revenue and/or strategic commercial leverage. Data monetisation is treated as a core product line or differentiator in external relationships.

2. Marketability / demand (weight 25%)

Question: How large, accessible, and interested is the market for this data (even if not fully monetised yet)?

Score

Descriptor

1 – 2 Very low

No clear external use cases; few plausible buyers or partners. Comparable products rarely seen in the market.

3 – 4 Niche

Potential interest from a small set of players (e.g. a specific vertical). Comparable data exists but serves a narrow audience.

5 – 6 Moderate

Several identifiable customer segments or partner types; comparable products listed on data marketplaces or sold by brokers. Some inbound interest or positive market testing.

7 – 8 High

Strong potential demand across multiple sectors or geographies. Marketplaces, brokers, or partners already active in this category; clear evidence this class of data sells.

9 – 10 Strategic

Highly sought‑after category; multiple industries or platforms actively chase this data. Losing exclusivity would clearly weaken competitive position.

3. Pricing power / unit economics (weight 20%)

Question: When sold or licensed, does this data command strong prices and attractive unit economics?

Score

Descriptor

1 – 2 Weak / commoditised

Must be heavily discounted to sell. Pricing is low compared to similar datasets; margins thin after acquisition/processing costs.

3 – 4 Limited

Modest price points; often bundled or given away to support other products. Customers are very price‑sensitive; little room to increase prices.

5 – 6 Reasonable

Solid, market‑aligned pricing (per record, per API call, per subscription). Margins acceptable after costs, but not exceptional.

7 – 8 Strong

Premium pricing vs comparable data; customers accept higher rates due to uniqueness, timeliness, or quality. Good leverage in contract negotiations.

9 – 10 Very strong

Data commands top‑tier prices and favourable terms (revenue share, minimum commitments). High margins and sustained pricing power despite wider distribution.

4. Rights / constraints (weight 20%)

Question: To what extent can you legally and practically monetise this data in the market?

Score

Descriptor

1 – 2 Severely constrained

Legal, contractual, ethical, or regulatory barriers effectively prevent external monetisation (e.g. no rights, strict privacy/sector rules).

3 – 4 Heavily restricted

Monetisation is only possible under narrow conditions (e.g. strong anonymisation, limited geos, very restricted use cases). Complex, high‑friction contracting.

5 – 6 Moderately constrained

Clear rights to monetise in several contexts, but with meaningful restrictions (e.g. specific industries, purposes, or aggregation levels). Compliance effort non‑trivial.hdsr.mitpress.mit+1

7 – 8 Broad rights

Generally free to license or barter the data subject to standard data protection and contractual controls. Most plausible commercial use cases are allowed.

9 – 10 Extensive / flexible rights

Very broad rights and low friction to monetise (e.g. clean IP ownership, robust privacy‑preserving design). Easy to create multiple data products/derivatives for different markets.

Computing the composite MVI score

  1. For a given information asset, assign 1–5 for each MVI dimension using the descriptors.
  2. Compute a weighted average:

𝑀𝑉𝐼=0.35⋅𝑉+0.25⋅𝑀+0.20⋅𝑃+0.20⋅𝑅

Where:

  • 𝑉 = Actual realised external value score
  • 𝑀 = Marketability / demand score
  • 𝑃 = Pricing power / unit economics score
  • 𝑅 = Rights / constraints score