Creator empowerment: Reimagining revenue for creatives

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  Quantumrun Foresight
• July 13, 2023

Insight highlights

As the number of content creators continues to increase, traditional platform dominance is being challenged due to increasing monetization options. Notably, disruptive innovations like non-fungible tokens (NFTs) and digital commodities offer creators new revenue streams, making them less dependent on platforms. This shift in power dynamics, while fostering creativity, innovation, and closer fan relationships, also presents challenges, such as a redefinition of work and the need for revised labor laws and support systems.

Creator empowerment context

About 50 percent of US non-professional internet creators are now generating income from their online activities. With increasing monetization options, it's becoming more challenging for platforms to maintain their traditional dominance over these creators. Innovations like NFTs and digital commodities provide creators new avenues to earn potentially substantial profits from their work. 

Tech entrepreneur and investor Kevin Rose unveiled Proof Collective, an exclusive group behind several highly successful NFT programs like Moonbird, showcasing the potential of new decentralized finance (DeFi) revenue streams. Patreon, a platform that allows fans to support creators, has seen creators earn a combined total of USD $3.5 billion. Even reselling digital assets can be highly profitable, as illustrated by the reselling of an NFT of Twitter co-founder Jack Dorsey's inaugural tweet for USD $48 million in 2022 after initially being purchased for USD $2.9 million in 2021. 

Moreover, prominent creators hold significant influence and can shift their audience from one platform to another. The power dynamics are shifting in favor of creators, with the value increasingly tied to the relationships they foster with their followers. The rise of the digital economy offers creators a greater scope to cultivate communities around their work and seek remuneration. Consequently, platforms may find their control diminishing in the face of empowered creators.

Disruptive impact

As creators gain more autonomy, they have the freedom to experiment, innovate, and potentially generate higher revenues, thereby contributing to a more diverse and vibrant digital content ecosystem. Furthermore, it leads to deeper, more authentic relationships between creators and their fans, as the traditional intermediaries are removed from the equation. These close-knit communities can foster loyalty and sustained engagement not influenced by corporate decisions.

However, with this power shift, there are also potential challenges that may arise. Platforms traditionally have offered protection and standardized regulations for creators, including copyright protection and dispute resolution mechanisms. As creators become more independent, they may have to shoulder these responsibilities themselves. They may also need to acquire or hire new skill sets such as contract negotiation, marketing, and other business management skills to navigate the complexities of self-management. The barrier to entry for new creators might become higher, making it more difficult for them to break into the scene.

From a broader economic and societal perspective, this trend could redefine our understanding of work and entrepreneurship. As more people make a living from online activities, it challenges traditional notions of employment and work structures. This shift could lead to more flexibility and independence for many but also brings uncertainties tied to irregular income and lack of job security. Laws and regulations might need to be adjusted to accommodate these new forms of work and ensure fair practices. 

Implications of creator empowerment

Wider implications of creator empowerment may include: 

• A broader diversity of voices and perspectives as more people from various walks of life, cultures, and views are able to share their narratives.
• Creators keeping a larger portion of their revenues, leading to a shift in advertising dollars flow from platforms to creators.
• A decentralization of information with more individuals having the means and platform to share information and perspectives. This trend could increase political plurality and reduce the ability of any single group to control the narrative.
• More sophisticated and accessible content creation tools, such as software and equipment. Companies may invest more in developing such tools, enabling creators to produce higher-quality content with fewer resources.
• The continued rise and evolution of the gig economy. With creators acting as independent contractors, issues around fair compensation, benefits, and job security may become even more critical, and labor laws may need to evolve to address these challenges.
• Increased entrepreneurial activities as creators essentially operate as their small businesses. This shift could stimulate economic growth but also require more resources and support systems for small business owners.
• Soft skills like creativity, storytelling, and personal branding becoming more critical. This trend could influence education systems, which might shift to better prepare individuals for this new landscape.

Questions to consider

• If you’re a content creator, how are you using tools to become more empowered?
• How else can companies help content creators become more independent?