How The $100B+ Creator Economy Is Going To Be Shaped By Big Tech - CB Insights Research

How The $100B+ Creator Economy Is Going To Be Shaped By Big Tech - CB Insights Research

The rise of the creator economy has been fueled by the frustration felt by influencers who saw their high-traffic content generating significant revenue for big media platforms, while they themselves received relatively little in return. However, this power dynamic has begun to shift, with platforms like Facebook and Twitch recognizing the importance of supporting and rewarding content creators.

Facebook, for example, has seen a significant increase in the number of content creators earning substantial income from ads and fan support. The platform has also introduced features like Stars, its native tipping system, and plans to allow creators to charge for access to Live Audio Rooms. Additionally, Facebook has established an Audio Creator Fund to support emerging creators.

Similarly, Amazon has been making moves to tap into the creator economy. Its Amazon Live Creator app allows influencers to livestream and earn commissions through livestream sales. Twitch, Amazon's game streaming service, has also experienced significant growth, with creators streaming 206 million hours in Q3'20. To further monetize the platform, Twitch is looking to increase its ad revenue and has introduced tiered subscriptions that differ by country to cater to local pricing.

Livestream shopping has proven to be a lucrative avenue for companies looking to succeed in social commerce. Taobao Live, for example, generated $7.5 billion in the first half hour of presales for China's Singles' Day shopping festival. This trend is expected to continue growing, with livestreaming projected to generate up to 20% of total e-commerce sales by next year.

The shift into the creator economy by big tech companies like Facebook, Amazon, and Twitch is driven by their desire to retain users. By providing more opportunities for content creators to monetize their work, these platforms can keep creators engaged and prevent them from seeking alternatives.

However, creators themselves are likely to favor becoming platform-agnostic and establishing independent brands. This allows them to have more control and reduce their dependence on any one platform. The creator economy is driven by the desire for creative expression and the ability to connect directly with audiences, and creators will gravitate towards platforms that offer the most reach and financial success.

While big tech's entry into the creator economy is promising, there are still challenges to overcome. One such challenge is the platform fees charged by companies like Apple, which takes a 30% cut from developers' earnings. This has been a point of contention, with some arguing that a lower fee would significantly boost the creator economy.

In terms of the international market, Japan is the second-largest market for SaaS and software, making it a crucial market for companies like Notion. To succeed in building a business in Japan, it is essential to understand the local culture, network, and ecosystem. Notion, for example, has recently expanded its team in Japan to include sales and marketing representatives.

Notion's co-founder, Ivan Zhao, emphasizes the importance of attention to detail and craftsmanship. This attention to detail is reflected in the company's product and its commitment to providing a high-quality user experience. Notion aims to create a tool that allows more people to participate in the creation process.

When it comes to hiring, finding the right talent is crucial. Notion values craftsmanship and emphasizes the importance of maintaining quality while moving quickly. The company has a culture of direct feedback, allowing employees to learn from each other and improve. Notion also values individuals who can focus on their work and bring a sense of hospitality to their interactions.

In conclusion, the creator economy is being shaped by big tech companies like Facebook, Amazon, and Twitch, who are recognizing the value of supporting and rewarding content creators. These platforms are introducing features and tools that allow creators to monetize their work and engage with their audiences. However, creators themselves are also seeking independence and platform-agnostic solutions to reduce their reliance on any one platform. To succeed in the creator economy, it is crucial for companies to understand the needs and desires of creators and provide them with the tools and support they need to thrive.

Actionable Advice:

1. For content creators, consider diversifying your presence across multiple platforms to reduce dependence on any one platform. This will give you more control and flexibility in monetizing your work.
2. For big tech companies entering the creator economy, prioritize the needs and desires of creators. Providing fair compensation and a supportive environment will attract and retain top talent.
3. For platforms looking to increase monetization, explore innovative avenues such as livestream shopping. This emerging trend has proven to be highly lucrative and presents new opportunities for both creators and platforms.

Sources:

• "How The $100B+ Creator Economy Is Going To Be Shaped By Big Tech - CB Insights Research"
• "万能ツール「Notion」共同創設者のIvan Zhaoが考える、プロダクト、採用、バリューのポイントを直接インタビュー | ALL STAR SAAS TALENT"