Content is the essence of the Internet and comes in many different forms that today’s Web2 Internet iteration supports: text, audio, video, or a combination of all three. However, content is hardly a free resource. It is content creators who are now becoming opinion leaders, influencers and the cornerstones of so many of the critical services businesses rely on, such as advertising, marketing and public relations management.
The need for content and the pursuit of independence – epitomized by thousands of bloggers and indie artists – has fueled an immense online economy that trades talent and often brings in sales volumes that many a top performer would like to earn. This economy is also known as the creative economy: a financial framework that allows independent individuals to monetize their self-expression by feeding the public with the kind of content they are willing to pay to consume.
A rising force
The creative economy is an enormous force: a unique, online phenomenon that exceeded the $104 billion market size threshold by the end of 2021. Given the snowball effect of demand for new content on popular platforms, such as TikTok, empowering independent artists and performers, experts are hesitant to make predictions about the potential market size of the creative economy in the near future. future.
The reason for the lack of tangible forecasts is that the creative economy is an extremely young phenomenon that started with the COVID-19 pandemic. The lockdowns sparked a wave of talent among people confined indoors, resulting in a release of creativity that others sharing incarceration were eager to consume as much-needed entertainment.
Related: The best is yet to come: what’s next for blockchain and the creative economy
Since micro-entrepreneurs creators are closely related to influencer marketing, which: stains about $13.8 billion in market size, it is possible to understand the prospects that further expansion of the phenomenon may bring. More importantly, experts believe the transition to a new technology medium will enable content creators to overwhelm markets and industries with new opportunities for product and service promotion.
More than 50 million creators are driving their own talent economy, to put on more than $800 million in venture capital. Such numbers are only a shadow of what they may become in the future as new locations become available quickly.
The development of blockchain technologies has resulted in a major revolution in financial markets, empowering individuals rather than institutions and channeling ownership of data and funds to their holders. The qualities of the blockchain – immutability, complete transparency and the unreliable nature of operations – have permeated many industries, causing the balance of business orientation to succumb from centralized business dependency to decentralization. This shift in the basic concepts governing the relationships between participants in transactions, enabled by smart contracts, has not gone unnoticed in the creative economy.
With the decentralized finance and GameFi sectors spreading across their respective industries, diverting large groups of users away from conventional approaches to banking and gaming, it was only a matter of time before influencers and content creators decided to adopt the paradigm in their operational environments. change. The content creation model has changed forever with the incorporation of blockchain technologies that allow users to incentivize content creators, while allowing creators to actually monetize their talent without having to share the proceeds with centralized, often dishonest hosting platforms.
Related: DAOs are the foundation of Web3, the creative economy, and the future of work
The development of metaverses – fully digital environments powered by the blockchain on Web3 and virtual reality – will usher in a new era in content creation. Never before has talent had access to such a sophisticated set of tools to embellish even the bravest ideas on the doorstep of the real and digital world.
Metaverses allow creators to visualize everything in stunning graphic detail, from an opera concert in the void of space against a backdrop of nebulae to a blog stream on a desert island. Anything that can fathom creativity can be implemented in the metaverse for the benefit of all parties involved. By relying on the limitless possibilities of the metaverse when integrating virtual reality, content creators can unleash and unleash their creativity. Such promises of unseen quality of content can only be described as honeysuckle for an avid audience of viewers yearning for greater variety in the types of content consumed – and, most importantly, new experiences.
The blockchain foundation of the metaverse brings even more benefits to content creators as it allows them to use various mechanisms to monetize their content due to the versatile nature of internal cryptocurrencies. Users can stake their digital assets on specific creators, encouraging them to release more content of a certain type. Others can pay to access special content, while others can simply reward their favorite creators with donations. There are countless ways to monetize and content creators can always rest assured that their talent will be paid and no hosting platform can deprive them of their revenue.
Even more lucrative is the prospects for businesses in terms of the permeation of the content creator economy into the metavers. Marketing, advertising and promotion in general are taking a new look at evolution with content that can be customized in an endless variety of ways and seamlessly integrated into select creators’ channels. The metaverse offers companies a whole new frontier for implementation and audience reach, and its creators are the launchpads that can showcase products and services to their followers — for a price.
digitally in retrospect
The metaverse is the next iteration of the internet we know today: a fully user-centric environment that aims to take creativity to a new level. However, the audience will not be the only source of income for content creators as companies are eager to tap into this lucrative niche and leverage the opportunities offered by native, organic and highly versatile ad integrations into virtual reality content.
This article does not contain investment advice or recommendations. Every investment and trading move carries risks, and readers should do their own research when making a decision.
The views, thoughts and opinions expressed herein are those of the author only and do not necessarily reflect or represent the views and opinions of Coin-Crypto.
Johnny Lyu is the CEO of KuCoin, one of the largest cryptocurrency exchanges, which launched in 2017. Before joining KuCoin, he had a lot of experience in the e-commerce, automotive and luxury industries.