<jats:p> We identify some tensions between formal education and informal learning in the uses of popular literacy since the nineteenth century, in order to argue for a ‘demand-led’ model of education in digital literacy. We go on to analyse three case studies — digital storytelling, the Flickr photosharing site and the MMOG (massively multiplayer online game) Fury — to discuss issues arising from demand-led learning, which requires a procedural (not propositional) model of knowledge, a vernacular and informal model of creativity, and a ‘navigator’ and entrepreneurial model of consumer agency. In light of these examples, the article raises the question of how digital literacy can and should be taught. </jats:p>