Recreating the Creators’ Economy | Music Industry Blog

Everyone is creative! At least that’s what many mainstream media executives say when they talk about the creator economy. But whatever your view of the creator economy, there’s no denying its meteoric rise. What perhaps angers some elements of mainstream media is that the creator economy is shifting from a mere funnel of talent for traditional entertainment companies to something self-sustaining and growing. self-sufficient. But, despite all the positive changes, there are a lot of issues about the space.

Harness suction at scale

First and foremost, the creator economy is a business model for adjacent platforms and services that is built on mobilizing the hopes, dreams, and aspirations of a large-scale creator audience. While each of these creators individually aspires to success – regardless of its measure – the platforms do not need creators to find success for their respective business models to work. In effect, they monetize creators by exploiting aspiration at scale. If there are enough creators – and the pool grows rapidly – a multitude of small-scale audiences is enough to achieve the platforms’ strategic goals of driving audience engagement, which, in its turn, generates revenue. Complicating matters further is the fact that creators develop platform dependency – content to rent space on the platforms they depend on, rarely with rental rights and often slaves to the algorithm. . It may be the creator economy, but creators fuel it rather than direct it.

Platforms are using audience as a new form of distribution

What has allowed this conflicting set of priorities to take hold is the rise of platforms that use audience as a new form of distribution. While traditional entertainment services, like Netflix and Spotify, license and create content to distribute to the public, audience platforms, like TikTok and Twitch, derive their content from the public themselves. Even though most users consume rather than create, creators come from their ranks. The old license/creation-distribution-audience paradigm has been replaced by audience-creation-audience. If the traditional entertainment industry depends on cannonballs, the creator economy trades in bullets.

Audiences are also becoming creative, with 18% doing some form of content creation and 10% using creative tools on social platforms. Only 33% of consumers only consume content. Audiences have moved from the analog era to the streaming era, and now to the creator era. A growing number of creators are learning to tap into this growing demand for creation, as evidenced by music creators, like Pink Panthress, Sadie Jean and Russ, soliciting contributions from their fans on TikTok.

The current boom in the creator economy is opening more doors to more creators than ever before, while bringing the public closer to creation. But, as the number of creators grows, fandom and consumption become fragmented. The longer the line, the harder it is for creators to break through, find audiences and build careers. Creators find themselves locked in a perpetual cycle of create/produce/execute/engage, with their host platforms demanding ever-increasing levels of production frequency and volume.

With creators constantly afraid that jumping off the creative hamster wheel will see them disappear from the algorithm, there is a growing awareness that owning their audience and having direct communication with them has never been more important. Yet today’s creator economy is not built that way. The rise of companies such as Pico, Disciple Media and ChargeBee in India demonstrates the growing recognition of the “off-platform” opportunity. But the majority of creators have the majority of their audience on platforms where they are slaves to the algorithm.

Owning an audience is just one of a long list of structural challenges (e.g. compensation, discovery) that the creator economy must address if it is to move from its current phase of compelling opportunity to something something that can truly reshape and redefine the future of entertainment itself. There is both a duty of care and a window of opportunity that companies in the creator economy must seize with both hands, but the second cannot be achieved without the first. That’s why it’s time to recreate the creator economy.

Whether you’re into music, video, games, sports, or even comics, the creator economy is reshaping your business, your audience, your content, and, of course, your creators. Building on MIDiA’s years of work in the creator economy, we have just released a new landmark report: Recreate the economy of creators. In this report, we present data, analysis and case studies on the creator economy in music, video, social media, games, podcasts, sports and more, covering topics such as creator compensation, women creators, business strategy, distribution, and what independence really means.

If you are not yet a MIDiA customer and would like to know how to access this report, send an e-mail to [email protected]

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