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The creator economy is a $250 billion industry and it's here to stay

Nov 16, 2023 - businessinsider.com
The "creator economy", which revolves around social-media stars and influencers, is projected to become a $480 billion industry by 2027, according to Goldman Sachs. This economy includes not only creators but also professionals who work for them, such as agents, managers, and video editors, as well as startup founders and tech executives who have built platforms and companies to support creators. The main source of income for many creators is influencer marketing, with US influencer-marketing spend expected to reach $5.89 billion next year.

Artificial intelligence (AI) is the latest innovation driving the creator economy forward, with YouTube unveiling new AI tools to simplify content creation. AI is not expected to replace creators, but to increase productivity and provide more opportunities for content creation. The creator economy has also been boosted by the shift of many users from social networking to entertainment consumption on platforms like TikTok, YouTube, and Instagram. For the first time, more teens are daily watchers of YouTube videos than of streaming content from Netflix.

Key takeaways:

  • The "creator economy" refers to the business ecosystem built around social media influencers and content creators. It's estimated to become a $480 billion industry by 2027, according to Goldman Sachs.
  • Not only creators but also professionals working for them, such as agents, managers, and video editors, as well as startup founders and tech execs who build platforms for creators, are benefiting from this economy.
  • Artificial intelligence is the latest innovation driving the creator economy forward, with tools and features designed to simplify content creation and increase productivity.
  • YouTube has become the top platform for daily content consumption among teens, surpassing Netflix. This shift towards creator-driven content on platforms like YouTube, TikTok, and Instagram is blurring the lines between social media content and traditional media.
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