The firestorm that erupted at Digg earlier this week over a censored post has led to a lot of discussion about the nature of censorship in a world where everyone is a publisher. Called "The Great Digg Revolt," by some, the incident illustrated how much power users have over the social sites they contribute to. First, though, here's a summary of what happened for those few of you who have been living in a cave:
Overall this episode highlights the new dynamic of social media, where companies who live by their communities are sometimes led by those communities into potentially uncomfortable situations.

As a leader in the social media space, Digg came out with a slight black eye from the episode. While Digg eventually succumbed to their community’s demands, the delay and the initial response left a lot to be desired from the user standpoint.
The episode also raised a lot of questions about what else Digg might be censoring. At this point, it is reasonable to ask what it takes for a business to get a story removed from Digg. Is a cease and desist order all it takes? What was the decision making process behind the initial response of banning users and stories?
From a legal point of view, the reversal also indicates a calculated move. Only after thousands of sites published the key, did Digg decide to stop censoring as well. This makes Digg more of a follower (with lessened litigation risk) than a leader.
If Digg looked bad, AACS and the MPAA came away from all this looking worse. They came across as heavy handed and out of sync with what web users (and possibly consumers?) want. By trying to defend their intellectual property via legal wrangling, they ended up causing the number to spread farther and wider than it likely every would have had they left it alone.
In spite of their initial heavy handedness, AACS has vowed to continue along the same course. That's absolute craziness on their part. There is no way they can go after a million sites and come away looking good, or even get very much accomplished. Also, they need to stop devising encryption schemes where the encryption runs along with the media. Such encryption schemes are really hard to protect and it is nearly impossible to stop the distribution of their key once it has been discovered. Instead, they should focus on working with customers to provide legitimate channels to get desirable content.
For me personally, an interesting element of the story was trying to understand the source of the passion for the community. There are numerous examples of that passion, with individuals tattooing the code on their bodies, singing the code, printing it on t-shirts, etc. But where did this passion about a relatively obscure topic originate?
This episode marks a watershed movement that highlights the power of the Internet and social media in giving voice to the community member and really challenging existing business/social practices. For traditional media, it is just not possible to give air time to such a voice. My advice for businesses would be to pay close attention to this voice as it is only going to get louder.