Profits Are Concentrated on Huge Platforms and a Handful of Creators

Currently, most creator content is provided on platforms operated by companies. Creators can spread their production to a large number of fans by utilizing the platform’s user base, but only a handful of creators are able to reap its benefits. In reality, the platform’s algorithm dictates whether a certain production is to be spread or not, and only the creators who are able to draw the attention of the platform can benefit from the system.

Typical examples of such cases are Youtube and SNS including music subscription services and live-streaming services.

It was revealed from the internal data leaked in October 2021 from Twitch, a major live-streaming service, that half of all compensation went to 1,000 of the top streamers (0.01% of all streamers) and that many of the top streamers were white males - leading to criticism regarding the stifling of diversity.

In a similar case, 94% of musicians who distribute their music on Spotify are said to share 10% of the total rewards.

It is estimated that there are 50 million creators in the world. However, research shows that only 2 million (4%) of these creators earn an income equivalent to a full-time job. The market scale of influencer marketing, which is a reference to determine the scale of the creator economy market, is said to have grown to $104 billion in 2022. But it is likely that only a limited number of creators and platforms will reap the benefits of this development. Because the company-operated creator economy needs to have sustainable growth to maintain business, there is a dilemma that they cannot remain neutral and is inescapable from such arbitrariness.