"Online creators and their business models were on our mind this week after mega-popular YouTuber MrBeast announced that his company is buying fintech startup Step, followed by Hollywood studios sending a flurry of cease-and-desist letters to ByteDance over the launch of its new video generation model Seedance 2.0. Those seemingly unconnected headlines suggest a media landscape in the midst of transformative change, as popular YouTubers look to diversify their business models, with the threat and promise of increasingly powerful generative AI tools on the horizon."
"Anthony: [The news] led our colleague Lauren to do this great piece talking about the creator business model in general, and this sense that they aren't just relying on ad revenue anymore. I think it's still a pretty big part of their business, but she broke down a number of the most popular YouTubers and noted that each of them is expanding - usually into e-commerce, but also into other revenue streams."
""What's the next saturation point?" Kirsten wondered. "Not all of these folks can go out and spin off products. So then does the pool of successful creators just simply get smaller? Or will something else happen, technologically speaking, or a different medium that will allow them to find an audience to make money off of?""
Major creators are expanding beyond ad revenue into products, fintech, and other revenue streams to offset unprofitable media operations. MrBeast is acquiring fintech startup Step while also running a food product line that generated hundreds of millions and was profitable in 2024 despite his media business losing money. Hollywood studios issued cease-and-desist letters to ByteDance over Seedance 2.0, illustrating legal friction as generative AI advances. Questions arise about saturation in the creator market and whether fewer creators will succeed, or whether new technologies or mediums will create fresh opportunities for emerging creators to reach audiences and monetize.
Read at TechCrunch
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