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 a game-changer for content creators, who have long felt that big media platforms were reaping the rewards of their high-traffic content while offering them relatively little in return. However, big tech giants are now realizing the importance of supporting and retaining these creators, as they understand that losing their labor force could have dire consequences. As a result, they are making strategic moves to capture a bigger slice of the estimated $104 billion and growing market.

One such platform is Facebook, which has been actively working on ways to reward content creators. The number of creators on Facebook earning significant amounts of money has been steadily increasing. In fact, from 2019 to 2020, the number of creators earning $10,000 a month from ads and fan support grew by 88%, while the number of creators earning $1,000 per month nearly doubled. To further incentivize creators, Facebook has introduced features such as Stars, its native tipping system, which allows users to tip creators. Additionally, Facebook plans to allow creators to charge for one-time or recurring access to Live Audio Rooms and has launched an Audio Creator Fund to support emerging creators. By integrating these features, Facebook aims to become a more attractive platform for content creators.

Another platform making waves in the creator economy is Substack, a newsletter platform that allows creators to monetize their content. Substack takes a 10% cut of creators' earnings, and it has seen significant success in recent years. Newsletters have become a flourishing part of the creator economy ecosystem, and Facebook recognizes the potential in this space. As a result, it is looking to integrate newsletters into its platform, further expanding its reach and offerings for creators.

Amazon, too, 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. While Amazon Live may not be as well-known as platforms like YouTube, it has found significant success in the livestream shopping realm. For example, Taobao Live, Taobao's livestreaming platform, generated a whopping $7.5 billion in the first half hour of presales for China's annual shopping festival. Amazon hopes to replicate this success and expand its presence in the livestream shopping space.

Twitch, Amazon's game streaming service, also plays a crucial role in the creator economy. Creators have flocked to Twitch, with its user base streaming 206 million hours in Q3'20, nearly double the previous year. While Twitch currently derives the majority of its revenue from subscriptions, it is looking to increase its ad revenue. To fuel subscription growth, the platform recently launched tiered subscriptions that differ by country to account for local pricing. This pricing model could potentially attract more creators and subscribers, further solidifying Twitch's position in the creator economy.