Death Of The Creator Economy
What Replaces It?
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Death Of The Creator Economy
What Replaces It?
Written by a human, for humans, always.
I am hearing it more and more...
The Creator Economy is dead.
Now, some people will argue against this...
What does “dead” mean?
Are film cameras “dead”.
Technically no.
People still use them out in the world.
But in comparison to where it once was, the success of the companies within that industry, and where it is in comparison to digital cameras today...
It is virtually “dead”.
When people talk about the “death” of the Creator Economy...
They are saying that it is in a downward spiral from where it once was...
That the opportunities are fewer...
That the competition is higher...
That to be in the lower 99% of the market is unsustainable...
That the platforms where creators exist are struggling...
And the only thing that is allowing them to continue to exist is the fact that nothing has “yet” replaced them...
But as soon as that thing comes...
They will die...
Causing the creators tied to those platforms to also lose what they have.
The result...
What made the Creator Economy so powerful...
Will be lost...
And people will leave the industry...
Making it a shadow of its former self...
Assuming it is capable of surviving, which they may not.
Why is this happening, though?
A few factors...
The vastly increased levels of content made possible by AI...
The vastly decreased quality of content...
All of which makes it more difficult to see and find quality content...
On platforms that do not care about creators...
Whose goals are to keep people addicted to their algorithms, even if it is at the expense of creators...
Which we have seen this happen multiple times, such as with many businesses that collapsed on both Facebook and YouTube when algorithms changed...
At a time when more people are becoming aware and wary of the mental, emotional, and psychological damage that is caused by addictions to these platforms...
Causing them to spend less time on them, or looking to abandon them altogether...
Especially when they are tired of the lack of value and the constant levels of advertising that are pushed on these platforms...
Much of which is pushed by “creators” themselves who are looking for sales more than they are interested in creating content...
Yet those same creators are unable to outbid larger companies for advertising space, making content their only viable path to be “seen” on these platforms...
And simultaneously, these platforms rely on the high advertising costs to keep the business viable...
But where these larger companies become less willing to stay on platforms when they see audiences on them decreasing, both in number and watch time.
When you really look at it all...
You have an extremely high tower of cards...
That requires a large number of specific variables to keep it all going...
Of which all of those variables are appearing less and less stable.
Yet...
The tower has not collapsed...
So far.
However, that could change very quickly.
If the advertisers pull out...
If a large part of the creator body decides not to participate any longer...
If the audience gets too sick of AI content...
Poof.
The one large thing that is still needed, though, before we see an entire collapse...
Is a replacement.
When you understand Category Design economics...
You know that something will continue to remain alive...
Even if only barely...
Up until something is deemed better.
For instance...
People were tired of Video Rental stores and their prices long before Netflix came around...
But Blockbuster remained “strong” up until people really started to see Netflix and their Streaming Services as “better”...
Then...
Blockbuster (nearly) disappeared (except for one store still in existence).
The services that the Creator Economy relies on have not had their “Netflix” yet...
But it is a matter of time.
So then the question becomes...
What comes after the Creator Economy?
While we do not have the full answer yet...
We can look at what people desire to get an answer.
What are they saying?
They are tired of not being able to find quality information.
They are sick of unreliable people and information.
They cannot stand being bombarded with useless information and products constantly.
They do not want to be addicted to something that provides no real value.
They want more than to be just entertained in a way that is fleeting.
So, what will be next?
It will be something more akin to a Significance Economy.
People, products, and services that do not just “create” whatever is trendy...
But they will be putting out things that actually “add positively” to people’s lives...
Beyond entertainment and things that are fleeting.
People want true value that changes their lives for the better.
That is ultimately what people want.
The “how” for this becomes the difficult question...
Requiring changes that some people may not be ready for.
Why?
The Creator Economy makes a Promise that it cannot truly keep...
Especially in today’s world...
That “anyone” can “make it”...
As long as they get “seen”.
So what do people optimize for?
Getting seen.
This is why AI content has taken off...
If you can “flood” the channels enough...
It is more likely that you will be seen.
But the problem here...
Is that if things become “too” flooded...
Especially with things that are worthless, misinformation, propaganda, just plain uncannily weird in a bad sense, and in some cases harmful...
Well, there really is nothing left of value for people.
The only way to overcome this then...
Is to prevent certain types of things.
This creates a different issue, though...
Who controls what is allowed and what is not allowed?
See, what was beneficial about the creator economy in the beginning was that voices that had been silenced by “the powers that be” were finally able to get a platform to be seen and heard...
And some level of that could become lost.
We have seen the dangers of both extremes...
When only a small number of people control information, then it becomes more easily corrupted...
But when everyone is able to say anything and everything they want as often as they want with absolutely no filters at all, we lose value altogether.
So, you need to put some types of limitations...
But what?
Do you only allow certain voices?
Do you limit the number of things people put out?
How do you judge value?
Is something truly crazy, or is it just not yet understood in the mainstream?
Then...
How does visibility work?
We have seen companies that focus on likes...
But this creates a problem with trends that appeal to the masses, which may not truly be valuable.
We have seen companies that focus on both upvoting and downvoting...
But this creates a problem with mob mentality behavior.
The most likely scenario that I can see at the moment...
Is that instead of one super-community...
We will see more specialized communities where everything is built around specific themes.
But this itself has a problem...
Because how does one “find” these communities?
People are struggling to find good information on Google these days because of how much AI there is now...
Fewer people have a real physical community, which causes there to be fewer instances of word-of-mouth...
It puts these types of communities in a real interesting dilemma.
My best guess...
Is that these specialized communities will create alliances with communities with similar interests...
Cross-pollination from reliable leaders within these communities.
In this sense...
You need fewer instances of individual word-of-mouth because once someone connects to one community...
They will find a network of similar, yet uniquely different communities...
Where they are vetted by trusted people within those communities.
Communities that have greater successes will then become larger...
Those that are less effective will be phased out over time.
The communities that thrive...
Will be the ones who create and provide the highest levels of significance...
That exist within webs of communities that provide equally high levels of significance.
Will it be a perfect system?
No.
But the system we currently have is struggling under the weight of what it has become...
Becoming unsustainable and valueless.
What people want...
And perhaps what we need...
Is an economy that is focused on sustainability and value...
On something significant.
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