The Impact of the Creator Economy

The Impact of the Creator Economy

In our last post, we looked at the rise of the Creator Economy. Now, let’s take a look at its impact.

This revolutionary phenomenon means that people who create content — from filmmakers to musicians — get funded directly by their audience. This has the disruptive impact of removing the traditional middlemen like record labels, film/TV commissioners, and publishers. (Source: medium.com)

This has created amazing opportunities for content creators. The content creation industry, in particular influencer marketing, achieved a staggering CAGR (compound annual growth rate) of 52% between 2016 and 2021.

CAGR content creation — Impact of the Creator Economy

In the Creator Economy, the audience decides what to see. And not just that! Because they fund the content, the audience wants value for money so they also participate in the decision-making process, influencing the direction that the creators take.

Video first

One of the key trends in the Creator Economy is a video-first approach. According to Fortune Business Insights, the global video streaming market was valued at $372 billion in 2021. It’s projected to grow from $473.39 billion in 2022 to $1,690.35 billion by 2029, at a CAGR of 19.9% in the forecast period. 

One factor that’s propelling the market growth is the demand for higher-resolution videos. In particular, consumers have an insatiable appetite for livestreamed video, but they won’t tolerate delays, so there’s a huge demand for advanced low latency (low delay) video platforms. 

Demand drives technological innovation

The increase in tech-savvy content creators is generating a higher demand for media technology to support the proliferation of content than traditional broadcasters did, as illustrated below in Silverwood Partners’ Media Technology: Strategic Industry Analysis 2022:

Proliferation of Content — Impact of the Creator Economy

Such media technology is needed to manage all stages of the life cycle: from creating content to attracting and engaging with the audience. There’s also the challenge of monetisation, both online and offline; not to mention the overall management of the business. So, tech needs to do some heavy lifting! 

Let Overcast do the heavy lifting for you

Why not tap into the pot of gold that is video creation? Reach out to us and we would be delighted to give you a free demonstration of our platform.

The Rise of the Creator Economy

Lights, camera —> anyone!

There was a time when the phrase “Lights, Camera, Action” was only heard within the exclusive walls of Hollywood studios. Not so these days! 

The past two decades have seen the rise of the Creator Economy…the lowering of technological barriers facilitates anyone to generate an income through delivering content to an audience.

Social media enables access to audiences without the need to go through a broadcaster or publisher. But creators need access to technological tools to streamline the process of making fab content.

Evolution of the Creator Economy

According to Medium.com’s article ‘Evolution of the Creator Economy’, this progression follows a pattern that’s evident in any given creative industry: 

  1. Pioneer Era — first-movers create their own technologies, e.g. Pixar, Amazon, Zynga;
  2. Engineering Era — bottoms-up tools and middleware emerge to support overwhelmed engineering teams, e.g. Ruby on Rails, Stripe;
  3. Creator Era — top-down tools emerge to support a much larger market of creators and disrupt many of the businesses of the prior eras, e.g. Adobe, Shopify, YouTube.
Source: Silverwood Partners’ Media Technology: Strategic Industry Analysis 2022

Prosumer technologies take centre stage

Enabling “prosumer” technologies are a key symbol of the Creator Era. Musicians are expected to expand beyond streaming services like Spotify and Apple Music to technologies that drive discovery on those platforms and empower them to connect with their fans. 

We are also seeing a convergence of podcasts and videos; for example, OffCamera with Sam Jones, which records interviews with filmmakers then releases the audio as a podcast and the black-and-white video footage as an online TV show.

According to Bloomberg, YouTube is reaching out to podcasters and podcast networks, offering “grants” of up to $50,000 to individual shows and $200,000 and $300,000 to podcast networks to entice them to create video versions of their shows. 

Silverwood Partners’ Media Technology: Strategic Industry Analysis 2022 says YouTube’s decision to effectively fund podcasters’ adoption of video serves to validate a wider-industry trend: video will pervade all aspects of entertainment.

Tap into the Creator Economy

If you’d like to tap into the opportunities the Creator Economy offers, please reach out to us for a free demo of our video management platform. 

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