Creator Economy

Giving creators the power of content monetization and audience engagement.

Overview

Giving the power of content monetization and audience engagement to creators

From YouTube to TikTok to Clubhouse, digital content creators have developed into an animating force in the media, communications, and technology industries over the past decade. And over time, a growing network of tools, products, and services have developed around content and social media platforms to monetize opportunities for creators—influencers, celebrities, artists, etc.— to earn income outside of traditional and ad-supported distribution channels. The economic relationship between creators and their audience is, in turn, becoming more straightforward than ever as fans pay directly for exclusive content, interactions, and experiences; with creator platforms sitting in the middle, earning revenue through each transaction.

Alongside social platforms, creators are turning to platforms such as Patreon, Cameo, Substack, and Teachable that prioritize paid content over freemium offerings and provide the opportunity to maintain a continuous engaging relationship with their audience from production, to discovery, to monetization.

Industry Updates

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Market Sizing

The US Creator Economy market could reach USD 2.7 billion–6.1 billion by 2028

Conservative case

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Base case

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Expansion case

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Market Mapping


The creator economy largely revolves around videos, live streams, photos, and podcasts. Therefore the market segment covering these areas is more mature and therefore more highly populated with incumbents compared to the other segments. 

However, new concepts in creator-fan interaction—primarily facilitated by membership providers—can guarantee monetization for creators unlike more established freemium and ad-supported models. This segment includes established disruptors such as Patreon, escapex, and OnlyFans—providing an alternative to video content and blogs. Most of the disruptors in this segment are membership-based with creators and fans able to offer and purchase a range of interaction options at different price points.  

Amid a sustained interest in cryptocurrency, adoption of blockchain-related services including NFT (Non-Fungible Token) platforms have also gained traction as a new way of creator content monetization. This segment lacks incumbents and significant fundraising activity and therefore includes several minimum viable product and ideation level companies.    

Incumbents
Expansion
Go-to-Market
Minimum Viable Product
Ideation
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Videos/ live stream/ photography/ podcasts/ music
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Newsletters/ writing/ blogs
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Multiple facilities platform
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Membership providers
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Infrastructure providers
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NFT platforms
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StreamElements
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StreamElements
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StreamElements
StreamElements

The Disruptors


Disruptors offer a more personal mode of creator-fan engagement

The disruptors of the creator economy are bringing about more intimate channels for creator-fan interactions (such as Cameo, escapex, OnlyFans), in addition to platforms where individual creator monetization is guaranteed (such as Patreon, Substack). These disruptors enable creators to actively engage with their audience, predominantly via video or text, and have seen rapid growth, bringing fierce competition to existing incumbents.

Funding History

Competitive Analysis


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Product Overview
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Product Metrics
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Incumbents


Acquisitions are the most common form of entry

Major social media platforms including Facebook, Google, Twitter, and ByteDance are all key incumbents in the creator economy as well as global internet companies Amazon, Spotify, and WordPress maker Automattic. Mergers and acquisitions (M&A) is a common path into the creator economy, with Google and Amazon entering the space solely through their acquisitions of YouTube and Twitch, respectively. Facebook, on the other hand, maintains dominance by purchasing startups with developers building social products.

In House Development
M&A
Partnership
Investment
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Notable Investors


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Market Sizing

Total addressable market for the creator economy in the US is estimated to be USD 12.3 billion

The total addressable market (TAM) refers to the total revenue opportunity available for a product or service, while the actual market is the market size based on revenue projections. For the purpose of our analysis, the total addressable market is defined as the annual revenue that can be earned by the creator platforms. 
Our analysis mainly focuses on the revenue potential of creator platforms that facilitate subscription-based business relationships between creators and fans. We acknowledge that advertising could also be a revenue stream for creator platforms, but we exclude its impact in our analysis given that: 1) advertising revenue is usually achievable at scale only by platforms with a very high number of users (e.g YouTube and Twitch)—forcing startups in the creator platform industry to focus on subscription-based models; 2) the trade-off between subscription revenue and advertising revenue arising from free content offerings required to generate meaningful advertising impressions. 
We estimate the creator platform TAM within the US to be USD 12.3 billion. This value is arrived at after taking the following factors into consideration:
  • Proportion of population (aged over 12) who are willing to pay for digital content;
  • Current subscription pricing levels of creator platforms such as Patreon, Substack, OnlyFans, Cameo, Gumroad, YouTube Premium, and Twitch (we estimate the potential annual spend on digital content to be ~USD 300 per year and that one person could use two/three such subscriptions for digital entertainment content); 
  • Revenue sharing policies of each platform. 

Calculation of the creator platforms addressable market in the US

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