Social Media Platforms: The Governance and Ethics Design of Content Moderation

Founded in 2017, Contentra was a creator-centric, short-form content platform operating in Southeast Asia. Using an advertisement-based commission model, content creators earned advertisement revenue based on the number of views their content received, and via brand placements.

Contentra’s creator-driven model had successfully drawn millions of daily active users with its algorithmically curated content, but it also sparked a complex issue: grey zone content. Grey zone content was legally compliant but ethically contentious, and included content such as wellness scams promoting unverified health cures, emotionally manipulative confessionals, and risky pranks pushing safety limits. Media, safety advocates, and advertisers argued that such content jeopardised user well-bring and eroded trust.

The company’s leadership had to make a choice: should they take advantage of commercial momentum, or focus on ethical responsibility and introduce new governance policies? If indeed new enforcements were introduced, should they be strict (such as content removal) or soft (such as reduced visibility)?

Contentra’s decisions on its policy path could shape industry norms, and would set the tone for what responsible growth would look like in the platform economy of the future.

This case addresses strategic decision-making in platform governance, focusing on the trade-offs between user engagement, ethical responsibility, and operational feasibility. It highlights the tensions between commercial growth and content moderation in handling legally compliant but ethically questionable grey-zone content. The case encourages students to think like platform leaders and balance user protection with sustainable growth in creator ecosystems.

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