Key Drivers of the Creator Economy

The decade-old creator economy is now firmly established and the focus on the market has never been greater. With the pandemic accelerating the way creators make money, the momentum of the creator economy has only increased from 2020.
India is a land of over 50 million content creators spread across global apps. The size of the global creator market has also grown significantly to over $104 billion. The affordability, accessibility and ubiquity of creative tools have been the main tools available to creators to supplement their incomes during stay-at-home measures. The mix of these key catalysts; and the level of global connectedness of individuals has resulted in an irreversible moment in favor of explosive creativity. Many of these creators followed the trend out of boredom, and some of them found full-time careers.
In short: a creator economy is a large group of independent creators, curators and community builders who create independent, technology-driven digital businesses using software and financial tools that allow them to monetize their contents.
Let’s take a closer look at the main enablers of the creator economy
Independence- Power to creators
“Big media” has ruled the entertainment world for many decades. Major production houses and corporations had the control to decide how, when and where content should be shared. These big media companies owned the creator-to-fan pipeline, deciding who and what audiences saw, and wielding complete financial power over those creators and their content. Then came the resistance.
With the advent of monetization tools, software, and the Internet for everyone, content creators have become their own publishers. Anyone, based on their interests and abilities, could upload anything, and everyone did! This is how people-focused businesses are born. Now, people are happily consuming content created by creators and distributed without the need for traditional businesses. After the outbreak of the pandemic, the entrepreneurial spirit of these creators grew as many unemployed creatives sought alternative and independent sources of income. This is the evolution of the creator economy, and it’s markedly different than before.
Patronage – The platforms are the new owners
Software coupled with financial tools have played an important role in the development of the creator economy. Platforms like Youtube, Tic, instagram, on which creators have made their fortunes through live streaming, uploading long and short video content has made it easy for creators to reach their audiences and monetize their content. Social media platforms have fueled the creator economy by providing marketplaces where creators can earn a living. Once top creators have built an established following on these platforms, other brands reach out to them to recognize the ROI of paying those creators and leverage their reach on the platform to advertise products and services.
Creation – Doing what they are good at
We are at an inflection point in history where becoming an established creator is one of the most sought-after professions. The startups that will dictate the evolution of the creator economy are those that focus on empowering creators to monetize what they are already doing: creating content.
Power of technology
The growing creator economy is largely dependent on multiple sources of revenue and tools. With the scalability of technology, creators can now hone their skills and learn how to create content, engage large audiences, and earn a living based on their passion. The right technology not only helped reduce production costs with low-cost software, but also limited the distribution challenge with social media and other networks.
Several tools have also sprung up to make it easier for creators to reach fans through more formats such as live streaming and short form video, by tying audiences to the platforms themselves.
Upcoming Opportunities
The era of creators is underway in several industries: live streaming, video, e-commerce, podcasts, and certain types of games. Social apps that offer live streaming as an important feature account for $3 of every $4 spent on top social apps in H1 2021.
India is expected to dominate the live streaming industry over the next five years, narrowing the gap with China in terms of total time spent. The coming years should see a massive growth of Tier II and Tier III cities fueling the community of over 100 million creators over the next few years.
Tanmai Paul, co-founder and product manager, Live Bolo

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