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Knowledge is power. 

This is one of the basic foundations when it comes to the way our society functions. 

Everything in our world boils down to these three words that have been at the core of the progressive steps humanity has undertaken. 

Today, knowledge still equals power, but there has been a slight shift in the sentiment because power also equals profit. 

Today the combination of knowledge, power and profit is mainly used in relation to the creator economy.

Interestingly, as society changes our basic principles change with us.

What exactly is the creator economy?

The creator economy is a relatively new phenomenon in the media and entertainment industries that has indirectly triggered a shift in many aspects of our lives. 

Also known as ‘influencer economy’ it outlines the production, monetisation and marketing of content, products or services through digital platforms. 

While such digital creators haven’t completely overtaken the job of professional media producers, journalists or actors, their way of profiting has unquestionably changed the landscape of the way information is being spread, trends are being provoked and society is being shaped.

Who can be part of the creator economy? 

There are no restrictions on who can become a creator. 

Whether you are an independent writer, an artist, a musician, a social media influencer or just somebody who wants to show the world their special powers, you can always turn to the digital platforms and make your dream come true. 

The only thing that stands between the power of your knowledge and fame is about one million views.

The luxury of not being restricted in their creativity is a crucial part of a creator’s job.

Key drivers of the creator economy

Driven by technological progress, the consequential increase in internet users and high screen time on the one hand, globalisation, change in social behaviour and disruption in formal employment opportunities on the other, the trend of ‘influencer economy’ had had its big boost since the global pandemic in 2020. 

Back then people turned to digital platforms such as YouTube, Instagram, TikTok and many more and started monetising their influence by using ads, subscriptions, sponsorships and product sales. 

This was partly a main income source for those who had lost their jobs due to the impact of Covid19 on businesses. 

The disruption in formal employment opportunities has paved the way for a more flexible job culture and additional revenue sources by remote work technologies. 

The popularity of short-form video content as well as the social shift to more introverted lifestyles have also helped to promulgate the idea of the digital creator and establish it on the job market. 

Thanks to the many different revenue streams such as advertisements, digital subscriptions, sponsorships, exclusive content offerings, content licensing and brand partnerships, people turned their power to create into profit. 

Today everyone who creates some digital content and earns something in return can be regarded as part of the creator economy.

Opportunities for creators and businesses

Creators have a direct connection with their fans through social media, which also offers them a global reach. 

The luxury of not being restricted in their creativity is also a crucial part of a creator’s job as well as their capability to build their personal brands without any difficulty. 

Businesses on the other hand can reach new audiences by rethinking their product and business strategies – which has gradually become a necessity in order to still be compatible.

The coming months and years will precipitate the arrival of new kinds of micro-influencers and niche-communities.

The future of content consumption

Thinking about the way businesses had to adapt themselves to this new tendency of reaching potential clients through interpersonal communication rather than through sources without direct interaction, it is intriguing to explore some future trends whose roots might even already be established. 

For instance, how will Metaverse and Web3 impact the creator economy? 

Although we cannot know for sure how our world will evolve in the next couple of decades, there are some potent predictions about the creation of new business models and revenue streams for creators, developers and entrepreneurs. 

Virtual retail and digital services in the Metaverse, such as cyber real estate, cyber clothing, virtual events and things like digital adventures are some food for thought. 

There will almost certainly be some new ways to monetise creators’ works and new opportunities to launch new businesses. 

Metaverse and Web3 will offer a much larger global audience to creators through a more direct engagement with the audience compared to the ‘old-fashioned’ physical commodities. 

Judging from the pace of the evolution of the creator economy, we can expect a lot of innovation and growth in the interactive experience between virtuality and reality.

The rise of micro-influencers and niche-communities

The coming months and years will precipitate the arrival of new kinds of micro-influencers and niche-communities which will once again affect consumer behaviour and will stimulate a shift in the social interactions between people. 

To illustrate this point, there might be ways for visualisation of certain products at home or virtual tours of certain places. 

With the help of artificial intelligence it might even be possible to establish relationships with unreal characters which will lay the foundations for new research in the areas of sociology, psychology and communications focusing on parasocial interactions and identification.

The German influencer Pamela Reif whose focus is on fitness, nutrition and life-style has also faced severe criticism about her body.

Fame can be a burden  

Up until now the presentation of specific figures profiting from the creator economy has given some valuable insights concerning people’s behaviour in reaction to the exposure to certain social phenomena. For instance James Charles, an American YouTuber and make-up artist, launched his make-up channel in 2015 and has become number one most subscribed beauty guru. 

Fame, however, can also be a burden. The severe criticism of his sexual impropriety has not been an easy task to deal with. 

The German influencer Pamela Reif whose focus is on fitness, nutrition and life-style has also faced severe criticism about her body. 

There is, of course, also the question of whether creators are given the fair compensation and labour rights they deserve for the amount of energy they put into their work. 

While the price of influencer posts can vary from $10 – for the so-called nano-influencers – to more than $5000 for mega-influencers – there is still uncertainty when and whether there would be a potential business deal. And what is more, the lack of certainty about what is coming next on the global landscape (future pandemics, recessions, wars, etc.) as well as the exclusion of health insurance are precarities that come with the job. Therefore, though some content creators can earn up to an average of $344.000 per year, there is always a risk of falling into a lower income bracket.

Ethical considerations

One must, however, also pay attention to the effects of these trends on the users. 

By showing the positivity of their lives on social media, creators stimulate an aspiration towards productivity and healthy life-style, but they can also have the countereffect of their actual intention. 

Though there is no significant scientific proof of negative effects of social media on our society, it is true that many females today struggle with eating disorders and body dysmorphia which also correlates with their passion for fitness and well-being. 

Younger people in general might also face pressure from apps like Instagram, Facebook, Snapchat and TikTok when it comes to the fluctuating number of followers and likes they get. 

In relation to the users’ welfare there are also concerns about the privacy and protection of their data. This issue has prompted intimidation in many of the users with regard to how much information they would want to share on social media platforms.  

The creator economy is gradually changing the landscape of our digital world. 

Whether we talk about business, retail, health, beauty, fitness or even love, this new phenomenon will define the direction of many aspects of our lives in the future. We are what we create but we are also what we love. Who knows … maybe one day there might be marriages between humans and AI-generated entities. 

The future is obscure but we are its composers. 

Tomorrow’s picture lies in our hands and the creator’s works will determine the colour palette.

Author

Tina Doncheva