The Future of the Creator Economy

 

 

By N.K.Narasimhan

Introduction:

In recent years, the creator economy has experienced explosive growth globally, surpassing the $100 billion mark, according to Classplus creator trends report 2023. While the industry was initially dominated by entertainers, a new wave of creators, known as "infopreneurs," is reshaping the landscape. This article explores the current state of the creator economy in India, delving into emerging trends, challenges, and the role of tier 2 and tier 3 cities in shaping its future.

The Rise of Infopreneurs:

Classplus's report sheds light on the evolving nature of the creator economy, emphasizing a shift from pursuing celebrity influencer status to establishing sustainable businesses. Non-academic creators on platforms like Classplus saw a significant increase in earnings, reaching INR 200 crores in 2023, marking a 2X growth from the previous year. The report indicates a 300% increase in the number of creators on the platform since 2021.

Notably, algorithm changes have impacted 77% of creators' audience engagement, with 25% experiencing revenue losses ranging from $1,000 to $9,999 due to these changes. However, despite challenges, the creator economy in India is diversifying, with personal development, health and fitness, personal finance, and e-learning witnessing substantial growth.

The Rise of 'Fin-Fluencers':

The year 2023 witnessed the emergence of 'fin-fluencers,' individuals leveraging the rising financial awareness among retail investors. The number of investor accounts in India surged from 3.93 crores in December 2019 to 13.23 crores by October 2023. Classplus reported that trading and investment education became one of the largest categories on their platform, with 'finfluencers' seeing a 2.2X increase in 2022 and a 3X increase in 2023 compared to 2021.

Creator-Led Courses as Alternatives to Traditional Education:

The report highlights a growing trend of creator-led courses gaining traction as alternatives to traditional education systems. These courses, known for their flexibility and accessibility, range from INR 1,000 to 50,000 on platforms like Classplus. Notably, around 70% of the audience accessing these courses hails from Tier II+ cities and towns, showcasing the empowerment of individuals, particularly women, in these regions to generate income.

Tiki's Impact on the Creator Ecosystem:

Singapore-based Tiki is making waves in the short video content creation space in India, especially in tier 2 and tier 3 cities. Tiki's CEO, Ian Goh, mentions that 60% of their traffic comes from these cities, offering a platform for creators who might struggle to establish a follower base on more saturated platforms like Instagram. With over 100 million downloads and currently ranking fifth in the top free social apps in India, Tiki has become a significant player in the Indian creator ecosystem.

Future Outlook and Sustainability:

Looking ahead, Tiki's CEO Ian Goh emphasizes that platforms adding value to creators and stakeholders will thrive. Sustainable growth, transitioning from the 'attention economy' to the 'intention economy,' where fulfilling user needs is paramount, is crucial. Tiki aims to break even by 2023, working with local partners to become the go-to media platform in India.

India's Ascent to a $1 Trillion Internet Economy:

RedSeer's report anticipates India becoming a $1 trillion internet economy by 2030, driven by growing internet penetration, high-speed access, and increased online activities. The three demographic segments - high earners in metropolitan areas, aspirational and budget-conscious individuals, and the rural population in tier-2 cities - collectively contribute to this unique journey toward a consumption-led economy.

Conclusion:

The future of India's creator economy appears promising, with a diverse range of creators contributing to its growth. The shift towards sustainability, the rise of 'fin-fluencers,' and the impact of platforms like Tiki in tier 2 and tier 3 cities are shaping a dynamic landscape. As India inches towards a $1 trillion internet economy, the creator economy is poised to play a significant role in this digital-forward journey.