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The creator economy is booming, and predictions show it will reach a staggering $480 billion by 2027. However, despite the rapid growth of digital platforms, the majority of content creators earn minimal returns, while the platforms and third parties reap the bulk of the profits. This scenario is far from sustainable and the future of the creative economy requires radical change. Creative economy 2.0, shaped by artificial intelligence and web3 technologies, will change the dynamic between creators and platforms.
The problem with the creative economy
In the first wave of the creator economy, centralized platforms like YouTube, Instagram, and TikTok provided creators with an environment to build audiences and monetize their content. However, these platforms came with important trade-offs. Content creators are often at the mercy of platform algorithms, arbitrary account closures, and profit-sharing models that are heavily skewed in favor of the platform. For example, YouTube cuts 45% of ad revenue, while platforms like TikTok offer limited monetization options despite generating billions of dollars in ad revenue.
Even more concerning is that 48% of creators earn less than $15,000 annually. As creators produce content that encourages engagement and keeps platforms profitable, they are often left with scraps struggling to make ends meet. This imbalance between platform profits and creators’ earnings has led to increased demand for change, and the answer lies in artificial intelligence and web3 technologies.
Enter creative economy 2.0: Powered by AI and web3
The next wave of the creator economy will be marked by two important innovations: artificial intelligence and web3 infrastructure. These technologies promise to eliminate the limitations of traditional platforms by giving creators greater control, independence, and financial autonomy.
AI is already transforming content creation, but the next phase will take it even further. AI tools such as AI personal assistants will become indispensable for creators. These AI-powered systems will help creators create content, manage fan interactions, schedule posts, and even create personalized AI influencers that can independently engage with audiences.
Imagine having an AI “twin” that handles mundane tasks like fan engagement and content management, allowing creators to focus on what they do best: creating. By automating routine tasks, AI will allow creators to scale their operations and expand their impact without burning out. This goes beyond just saving time; it’s about unlocking the potential to do more, create more, and engage more deeply with audiences.
Moreover, these AI tools can learn from the creator’s style and tone and ensure that interactions are authentic and personal. Creators will be able to leverage AI for everything from personalized fan experiences to creating on-demand content, making digital business not only more manageable but also much more lucrative.
Web3: Decentralized management and real ownership
Powered by blockchain technology, Web3 offers creators something they have long been denied: ownership. In the traditional creator economy, platforms owned the content as well as the relationship between creators and their audiences. Web3 is changing this dynamic by allowing creators to tokenize their content through non-fungible tokens and smart contracts.
With tokenized content, creators can sell directly to fans, protect their copyright from secondary sales, and ensure their work isn’t exploited without compensation. This opens up new revenue streams and allows creators to have control over how their content is distributed and monetized. No more intermediaries who exploit profits; web3 gives creators full control over their intellectual property.
By leveraging blockchain technology, creators can also engage in decentralized finance ecosystems that offer new ways to earn and invest. Whether through NFT sales, fan tokens, or private gated content, creators will have more options to diversify their revenue streams and build sustainable businesses.
Benefits of adopting AI and web3
So why should creators embrace AI and web3? Because these technologies will not only allow them to keep more of their earnings, but also provide them with unprecedented creative freedom. Here are some of the key benefits:
● Increased autonomy: With AI tools, creators no longer need to rely on third-party administrators or assistants. They can automate fan interactions, manage content creation, and ensure their brand stays active 24/7 without burning out.
● Financial independence: Web3 allows creators to directly monetize their content through tokenization, eliminating the need for platforms that take a cut of their profits. Creators retain full ownership and can earn ongoing royalties through secondary sales.
● Control over content: Content creators will no longer be subject to the whims of platform algorithms. By minting their content as NFTs, they control distribution, pricing, and access, ensuring they are fairly compensated for their work.
● Deeper fan engagement: AI-powered tools will enable creators to deliver more personalized experiences to their fans, encouraging deeper connections and loyalty. Whether through AI influencers or personalized content, creators can make their audiences feel seen and valued.
The future of the creative economy
As AI and web3 technologies become more widespread, creators who embrace them will be ahead of the curve, gaining more control, independence, and financial success. Platforms like SUBBD are already leading this charge by providing tools that allow creators to automate processes, tokenize content, and directly monetize their work. The future belongs to those who embrace these technologies and step into the new era of creative economy 2.0.
In this next wave, creators will no longer be at the mercy of the platforms. Instead, they will have the tools to enable them to fully own their creative output and reap the financial rewards they deserve. Creator Economy 2.0 isn’t just a prediction; already exists.
Gabrielle Taylor
Gabrielle Taylor is the co-founder and CEO of SUBBD, an AI-powered content creation platform designed to address the unique challenges facing digital creators. With ten years of experience creating content, Gabrielle brings first-hand industry knowledge to her role as a tech entrepreneur. His transition from a successful content creator to leading a tech startup stems from his vision of developing innovative solutions that empower creators. Gabrielle’s content creation journey has seen her reach 100k subscribers on YouTube, 80 million views and 150k followers on Instagram. With a deep understanding of the content creation landscape that allows her to lead with a practical, user-focused approach, Gabrielle brings a fresh perspective to the technology and blockchain communities. His work at SUBBD focuses on using technology to solve real-world problems for creators and positioning the platform as a forward-thinking solution in the evolving digital economy.