The creator economy was supposed to supplant traditional media and entertainment business models. Instead of being hired to work for a company, writers, comedians, filmmakers and other creators of content could go straight to their audience, charging a subscription for access to their work. Platforms facilitated publishing and payments and took a cut of income in return. Patreon, Substack, Cameo and OnlyFans carved out their own niche.
But just as in the real economy, inflation is hitting the creator economy hard. Competition for content is fierce. San Francisco-based creator platform start-up Patreon grew to employ more than 450 people before making the decision this week to cut its workforce by almost a fifth.
Chief executive Jack Conte blames the job cuts on a “broader economic slowdown”. But it may also be more difficult to sign up new podcasters, bloggers and artists. More social media companies are offering to pay creators directly. TikTok has its own Creator Fund, for example. They offer a larger potential audience too.