Creators Avoid Pain, Form New Economy

Michael Hedges June 7, 2021 Follow on Twitter

Global disruption over the last year and a half has renewed interest in economies, not to be confused with economics. Keen observers, between breaks for Zoom conferences, are conjoining random consumer behaviors with widely available technologies through the fractured prism of value and aspiration. Cryptocurrency meets boredom, insecurity and hubris. The term creator economy has been invented to capture the imaginations of those without.

Much of the attention to this creator economy is centered on social media platforms as so-called influencers adopt paywalls to extract nominal sums from tens of thousands, even millions for their particular creative expressions. This is no more - or less - than the candy bar economy, cheap sweet treats while waiting in the check-out line. It has worked quite well for candy bar producers for generations. It also works, eventually, for dental practitioners. “We are suffering from the painfulness of readjustment,” said fabled economist John Maynard Keynes in 1930, another rather difficult year.

“The power has shifted away from the (social media) platforms to the creators," said venture capital SignalFire principal investor and head of content Josh Constine to Reuters (May 26). "The platforms all stepped up and realized that they were in grave danger of losing their labor force, if they didn't add these features." That would be the ability to collect incremental financial remunerations as well as access to user data.

This creator economy is affecting the broader information sphere. Publishers and broadcasters are platforms, too. All the newsroom staff sees are budget cuts, staff reductions and nutty private equity owners. Stories abound of well-known reporters fleeing the newsroom grind for their own paid newsletters. Newsletter host Substack has become a magnet for writers with a point-of-view and willing audience. Twitter offers a newsletter host. Facebook is coming with Bulletin. Everybody - still - wants to be an entrepreneur and buy a large boat.

“I can’t imagine a more damaging entity for journalism than Substack,” said Piano chief executive Kaufman to TechCrunch (May 18). “I think it’s gotten a tremendous amount of attention from writers because it is a fantasy come true for journalists, this idea that you can make $500k a year for writing on occasion. But nothing can be farther from the truth.” Piano provides publishers with subscription tools and analytics.

Podcasting has joined the creator economy as major platforms rush to scoop up the audio bits. The rather no-frills Apple Podcast app has been available since 2012, by default on iPhones since 2014. The desktop version appeared in 2005. There is an astounding catalogue. In April a paid subscription option was unveiled, Apple taking the usual 30%. A technical glitch - odd for tech master Apple - briefly brought the paid subscription option to a halt in late May.

Audio platform Spotify also entered the paid subscription business for podcasts in late April. The 2019 acquisition of podcast platform Anchor provided Spotify the tricks necessary to turn podcasting into a serious business… for Spotify. In a revealing observation one venture capital analyst suggested to financial news portal Benzinga (May 26) that “podcasts offer more attractive unit economics than music.” Hence, Spotify is investing in exclusive and original content.

Every radio broadcaster on the planet, public and private, offers podcasts. Many simply grab material previously broadcast, make a few edits, add ads and send it away. Some have adopted a podcast-first strategy.

But traditional broadcasters, much like traditional publishers, are being out maneuvered by the specialists. Last week independent production house Ozy Media brought on Washington DC based BBC News anchor and correspondent Katty Kay as senior editor and executive producer, reported Axios (May 26). She collaborated with Ozy Media chief executive Carlos Watson on the popular “When Katty Met Carlos” podcast. "It took a really special place to get me to leave a special place,” she said about the new opportunity.

See also...

• Hot Topics - Digital Transitions

• Hot Topics - Podcasts and Podcasting

• Hot Topics - Paywalls

Media in Spain - Diverse and Challenged – new

Media in Spain is steeped in tradition. yet challenged by diversity. Publishers hold great influence, broadcasters competing. New media has been slow to rise and business models for all are under stress. Rich in language and culture, Spain's media is reaching into the future and finding more than expected. 123 pages, PDF. January 2018

Order here

The Campaign Is On - Elections and Media

Elections campaigns are big media events. Candidates and issues are presented, analyzed and criticized in broadcast and print. Media is now more of a participant in elections than ever. This ftm Knowledge file reports on news coverage, advertising, endorsements and their effect on democracy at work. 84 pages. PDF (September 2017)

Order here

Fake News, Hate Speech and Propaganda

The institutional threat of fake news, hate speech and propaganda is testing the mettle of those who toil in news media. Those three related evils are not new, by any means, but taken together have put the truth and those reporting it on the back foot. Words matter. This ftm Knowledge file explores that light. 48 pages, PDF (March 2017)

Order here

More ftm Knowledge files here

Become an ftm Individual or Corporate Member to order Knowledge Files at no charge. JOIN HERE!