Creator economy 2.0: AI and web3 define the digital success | Opinion

As an analyst with a decade of experience observing the digital creator economy, I can confidently say that we are on the cusp of a transformative shift. The rise of Creator Economy 2.0, fueled by AI and web3 technologies, is not just a prediction—it’s already here, and it’s long overdue.

The rapidly expanding creator economy is projected to hit an astounding $480 billion by 2027. Yet, despite the swift expansion of digital platforms, most creators struggle with meager earnings while platforms and intermediaries reap the bulk of the profits, a situation that’s unsustainable. The future of this economy calls for a transformative change. The upcoming Creator Economy 2.0, influenced by artificial intelligence and web3 technologies, is poised to reshape the relationship between creators and platforms.

The problem with the creator economy

Initially, centralized platforms such as YouTube, Instagram, and TikTok provided a launching pad for creators to amass followers and earn income from their content during the initial phase of the creator economy. However, these platforms have presented significant drawbacks. Creators frequently find themselves under the control of platform algorithms, face unpredictable account terminations, and contend with revenue-sharing agreements that heavily favor the platforms. For example, YouTube retains 45% of ad earnings, while TikTok offers only a few monetization avenues despite earning billions from advertising.

It’s even more alarming to note that about half of content creators take home less than $15,000 per year. While they generate content that boosts engagement and maintains the profitability of these platforms, they often find themselves in a precarious financial situation, struggling to sustain their livelihood. This stark disparity between platform earnings and creator income has ignited a surge in calls for reform. The solution may lie in advancements in artificial intelligence (AI) and web3 technologies.

Enter creator economy 2.0: Powered by AI and web3

As a crypto investor, I’m excited about the imminent surge in the creator economy, driven by two groundbreaking advancements: artificial intelligence and web3 infrastructure. These technological breakthroughs are poised to overcome the constraints of conventional platforms, offering creators increased control, self-reliance, and financial freedom.

The evolution of artificial intelligence is currently revolutionizing the realm of content creation, and it’s set to delve deeper into this transformation. In the near future, AI tools such as AI-powered assistants will prove invaluable for creators. These intelligent systems will aid creators in producing content, handling fan communications, scheduling posts, and even developing autonomous AI influencers capable of interacting independently with their audience.

As an analyst, I envision having an AI counterpart that takes care of the day-to-day fan interaction and content management responsibilities, freeing creators from these repetitive tasks. This way, they can concentrate on their primary skill—creating. By automating tedious tasks, AI offers creators the opportunity to expand their reach and impact without risking burnout. It’s not just about saving time; it’s about providing the freedom to generate more content, engage with audiences more intimately, and ultimately, achieve greater success in their creative pursuits.

Furthermore, these AI tools can adapt to a creator’s unique style and voice, resulting in interactions that seem genuine and tailored. With AI at their disposal, creators can explore a wide range of applications, such as custom fan experiences or on-the-spot content generation. This not only simplifies the digital grind but also greatly enhances its financial potential.

Web3: Decentralization and true ownership

As a crypto investor, I’ve come to appreciate the transformative power of Web3, built on blockchain technology. In the past, creators like myself were often deprived of something fundamental: ownership over our relationships with audiences and our content. Traditional platforms held the reins, profiting from our hard work. However, with Web3, the landscape shifts dramatically. It empowers us to tokenize our creations using non-fungible tokens (NFTs) and smart contracts, giving us back control over our intellectual property and fostering a more equitable relationship between creators and platforms.

Through tokenization, creators can now sell their work directly to fans, keep earnings from subsequent sales, and prevent misuse without fair compensation. This paves the way for additional income sources and grants creators the power to decide how their content is shared and monetized. Gone are the days of intermediaries taking a chunk of the profits; with web3, creators have complete authority over their intellectual property.

Utilizing the power of blockchain, creators can tap into financial systems that operate without a central authority, known as decentralized finance (DeFi). This innovative approach opens up fresh opportunities for earning and investing. For instance, through sales of Non-Fungible Tokens (NFTs), issuance of fan tokens, or creation of exclusive content behind paywalls, creators will gain additional methods to expand their income sources and establish long-term, viable businesses.

The benefits of embracing AI and web3

Embracing AI and web3 could be beneficial for creators in several ways. Firstly, these technologies can help creators retain a larger portion of their earnings. Secondly, they offer unparalleled creative liberties, as you might expect from such innovative platforms. Here are some primary advantages:

• Enhanced Self-Governance: By utilizing AI tools, creators can now operate independently from external managers or aides. They can automate fan communication, oversee content production, and maintain an active presence around the clock, preventing burnout.

●  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​.

Direct management of content: Content creators will no longer have to conform to the unpredictable decisions of platform algorithms. By tokenizing their content as NFTs, they gain control over its dissemination, pricing, and availability, thus ensuring they receive a fair remuneration for their work.

Improved fan interaction via AI: By employing intelligent tools, creators will be able to deliver tailored experiences that strengthen the bond between them and their fans. This could manifest in various ways such as AI-generated influencers or customized content, ensuring audiences feel recognized and appreciated.

The future of the creator economy

With the increasing use of AI and web3 technologies, creators who adapt to these innovations will find themselves in a strategic position, enjoying greater autonomy, financial prosperity, and creative control. Pioneering platforms such as SUBBD are paving the way by offering tools that empower creators to automate tasks, tokenize their content, and directly profit from their work. The future clearly favors those who seize these technologies and venture into the next phase of the creator economy 2.0.

Moving forward, creators will no longer be under the control of platforms; instead, they’ll possess the necessary tools to claim complete ownership of their creative work and receive the financial compensation they rightfully deserve. The Creator Economy 2.0 isn’t merely a forecast—it has already arrived.

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2024-10-14 14:10