The Intersection of Community and the Creator Economy: How Big Tech is Shaping the Future

Kazuki

Hatched by Kazuki

Sep 09, 2023

4 min read

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The Intersection of Community and the Creator Economy: How Big Tech is Shaping the Future

Introduction:

In today's fast-paced world, where traditional institutions are losing their appeal, people are searching for meaning, identity, and community in new ways. The decline of organized religion has led to a rise in online communities, offering fulfillment and connection. This shift has not gone unnoticed by companies like On Deck, which leverages the power of community to create exceptional experiences. Additionally, the creator economy has become a significant force, with influencers demanding better rewards for their content. Big tech giants are now recognizing the potential of this market and are making moves to capture a piece of the estimated $104 billion industry. In this article, we explore the common threads between these two trends and how they are shaping the future.

On Deck: Reimagining Education and Community:

On Deck (OD) is a prime example of a company that recognizes the importance of community in modern life. By identifying existing demands within their network, OD creates specific programs that meet those needs. For example, their founders, angels, and talent fellowships are tightly interwoven, forming a robust ecosystem. OD's approach combines community and curriculum, learning from the failures of the first generation of "ed-tech." By building tools and fostering a culture of peer-to-peer education, they have created a rewarding and personal learning experience.

The Macro Waves Driving On Deck's Success:

On Deck's success can be attributed to several "macro waves" or tailwinds. Firstly, the decline of traditional higher education and the rise of "ed-tech 2.0" have created a demand for virtual curriculum and community. Secondly, the shift to distributed living and working, accelerated by the COVID-19 pandemic, has made location less important in hiring. On Deck capitalizes on this trend by being a "Silicon Valley in the Cloud." Lastly, uncertainty acts as a catalyst for opportunity, and new norms create new needs. On Deck leverages these factors to stay ahead of the curve and provide the utility its user base craves.

The Big Tech Influence on the Creator Economy:

The creator economy has gained significant momentum in recent years, with influencers seeking better rewards for their high-traffic content. Big tech platforms have recognized the power shift towards creators and have added features to retain their labor force. Facebook, for example, allows users to tip creators and plans to offer paid access to Live Audio Rooms. Substack and Revue have become popular platforms for newsletters, with only small percentages taken as fees. Amazon has also entered the game, allowing influencers to earn commissions through livestream sales on its platforms.

YouTube's Dominance and Apple's Controversial Platform Fee:

YouTube remains a dominant player in the creator economy, with over a billion hours of video watched daily and an estimated $30 billion in ad revenue for 2021. However, the controversy lies in the platform fees charged by big tech companies. Apple's 30% fee on app purchases has been a major roadblock for creators. Some argue that the creator economy would be much larger if this fee were reduced. Stripe, on the other hand, takes only a 3% cut, highlighting the importance of platform fees in fostering growth.

The Future of the Creator Economy:

Big tech's foray into the creator economy is driven by the need to retain users and keep them engaged on their platforms. However, creators are increasingly becoming platform-agnostic, seeking independence and brand autonomy. This shift poses a challenge for big tech companies, who must adapt to the changing needs and preferences of creators. The future of the creator economy lies in empowering creators to build their own brands and cultivate loyal followings across multiple platforms.

Actionable Advice:

  • 1. Embrace the power of community: Whether you're a startup or a content creator, community is key. Invest in building strong relationships and fostering a sense of belonging among your audience or team.
  • 2. Adapt to changing norms and needs: Stay ahead of the curve by identifying emerging trends and needs. Be willing to pivot and reimagine your offerings to meet the evolving demands of your target audience.
  • 3. Consider platform independence: Creators should explore diversifying their presence across multiple platforms to reduce dependence on any one platform. Building an independent brand ensures more control and flexibility in the long run.

Conclusion:

The convergence of community and the creator economy presents exciting opportunities for both individuals and companies. On Deck demonstrates the power of community-driven learning and the value it brings to its members. Simultaneously, big tech giants are recognizing the potential of the creator economy and are making strategic moves to capture a share of this lucrative market. As the creator economy continues to evolve, it is crucial for companies and creators alike to adapt to changing needs and foster independence in order to thrive in this dynamic landscape.

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