The Creator Economy
When you think of an entrepreneur in America today, who do you think of? Bill Gates co-founding Microsoft, the largest and most successful software company in America, or maybe Oprah Winfrey, who had the highest rated talk show in America for almost 25 years? Of course, entrepreneurs like these are still around, looking to make an impact on the world. But the entrepreneurial landscape of today is very different from 20 years ago. Today, you will find your kids watching “content creators” who are live streaming or creating videos on Twitch, YouTube, TikTok, or various other content platforms.
This new age community of entrepreneurs are all part of what is called the “creator economy” which allows content creators and influencers to earn revenue from the content they make. YouTube was perhaps the birthplace of the creator economy, starting back in 2007, when they allowed creators to monetize their videos through advertisements. In 2023, YouTube generated $31.5 billion in ad revenue growth and currently has over 2.7 billion monthly active users, making it the second most popular social media app in the world, behind Facebook.1 You can find videos about painting, music performances, DIY activities, website design, and just about anything else you can think of. There are now an increasing number of new content sharing platforms as the creator economy continues to grow to fit the virtual entertainment demand of today’s consumer. If you have children, you may have seen them watching one of their favorite streamers play a video game, sometimes live in front of thousands of other virtual viewers. On Twitch, live gaming is their primary focus and main source of revenue. With over 7 million Twitch accounts that regularly streamed in 2023, there are now many different categories of content to watch.2 Twitch has gone from making $275 million a year back in 2016 to generating $3 billion in revenue in 2023, showing tremendous growth in more recent years sparked by the pandemic.2
Modern day content creators and the platforms they use have been able to capitalize on viewer’s support and their desire to interact with their favorite creators. While YouTube is a free service for users, content creators can earn money per the number of views they receive through sponsored advertisements shown on their videos. Viewers can also subscribe to be a Channel Member, which gives them additional perks in exchange for a monthly subscription fee to the creator. On Twitch, creators can set up subscription tiers that give the viewer benefits based on the level of subscription they choose. Viewers can also purchase a virtual currency known as “Twitch Bits” which they can send to their favorite streamers as another way to interact with them.3 As the virtual landscape changes, and viewers want more unique ways of interacting with the creators and their respective online communities, many content creation websites are expanding the ways for content creators to make money.
While the definition of an entrepreneur hasn’t changed, the evolution of the internet and the cultural shift surrounding entertainment has provided a space that needs filling. The reality is that we live in the age of quick information and quick entertainment. The creator economy is at the forefront, delivering all types of information, educational or not, as well as providing entertainment in many different forms. This new vanguard of digital entrepreneurs is tapping into the next generation’s desire to be a part of a community with accessible options for every type of entertainment, training, and informational need at a low cost of entry. It shouldn’t be a big leap, then, to see how someone can earn a living playing a video game.
For a different look at digital content creation, see Kristan Anderson’s blog about digital art.
Sources:
1YouTube Revenue and Usage Statistics (2024) - Business of Apps. (2024, September 9). Business of Apps. https://www.businessofapps.com/data/youtube-statistics
2Twitch Revenue and Usage Statistics (2024) - Business of Apps. (2024, September 4). Business of Apps. https://www.businessofapps.com/data/twitch-statistics
3How to make money on Twitch: The Ultimate guide. (2024, June 14). Shopify. https://www.shopify.com/blog/how-to-make-money-on-twitch
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