Content creators and platforms: a win-win business model?

It's a subject that comes up again and again: the opposition between the economic model of platforms based on advertising and the fair remuneration of content creators for their work. So, is a future possible between these two worlds? Passion Media tries today to answer the question.

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The content creation market is ultra competitive and very volatile! Yes, thousands of people are trying to make a place for themselves every day, hoping to monetize their content one day. Sometimes, success comes on a poker run. Often, it comes with perseverance and commitment. One thing is for sure, very few today can claim to make a comfortable living from it. Adam Davidson, author of the must-read book The Passion Economy says it best: “99.9% of people will not make a living on Youtube.” So, what future for content creators? How to find the right compromise with the economic model of the platforms? This is the topic of the day. 

Rules specific to each platform

YouTube, Twitch, TikTok, Instagram, Facebook… All these platforms have their own functioning, their algorithm, their more or less transparent propote. Sometimes, a simple change of parameter can imply a total rethinking of the content creator’s work (lowering of content visibility, moderation, change from a view-oriented strategy to an engagement-oriented one, etc…).

An Eldorado for the new generation

This is what we call the passion economy, or the economy of passion. The concept? Gone is the generation that dreams of security, of joining a large group and making a career of it until retirement. Today, a new way of conceiving work is being born. It is now easier to imagine living from one’s passion, one’s creative talent, one’s hobbies. Music, dance, drawing, singing, travelling… Yes, it is now possible to make a breakthrough by capitalizing on one’s talents that were previously put aside in the traditional business model. And for good reason: today, nearly 18% of American children dream of becoming YouTubers. 

Creators and platforms: two incompatible businesses? 

The objective of content creators is to make a living from their creations. Many businesses are possible (partnerships with brands, advertising, subscriptions, exclusive content, etc.). On the other hand, on the platform side, the vision is not quite the same. For them, the objective is simple: maximize advertising profits. In other words? Sometimes, the objectives of the two can meet. Very often, it is the platforms’ objectives that take precedence, since they dictate the codes of this market. However, there are some exceptions, like the French platform Mym, whose ambition is to create a fair model for users, creators and its own business model. More information on this media’s approach here.

Towards a more egalitarian economic model?

Unfortunately, the rules dictated by the platforms are often not clear and transparent. The algorithms are specific to each one, and can change from one day to the next. In most cases, what prevails today is the pay per click. But this varies according to many criteria (country, economic zone, etc…). For example, a click does not have the same value in the United States or in France. In France, the price would be around 1€ for 1,000 views (but again, this can vary and it is progressive depending on whether you have 1,000 views or 1 million). So, how to counter this very unequal way of working? How to regulate this market? How to create more coherent rules for all?

So, tomorrow, all Youtubers?

If the approach makes you dream, the bet is risky. Unfortunately, not everyone will be able to earn a living online. On the other hand, many people have been able to take advantage of the opportunities created by the impact of these platforms and thus create the job of their dreams. So, yes, it is possible. No, platforms do not exploit creators. They have not signed any contract with them guaranteeing them precise conditions for a determined period of time. They adapt to the needs and expectations of users, to new possible business. 

Mym, the platform that stands out

So the question is: how do we find the way to make it a win-win format? For the content creators, for the platforms. On this point, one platform stands out: Mym. Since its inception, the brand has implemented several actions to promote both the independence and freedom of content creators, but also to offer quality content and authenticity for fans. For example, the brand has set up a paid subscription system (to access exclusive content). It has also developed a revenue monitoring tool and an affiliation system between creators. In short, the platform is gradually deploying a range of tools that make it a real lever for content creators in managing their revenues.