Stripe data shows that the economy has shifted and is thriving, despite the belief that the creative economy has stalled.
The opinion in 2023 is that the economy has declined after its 2021 creator economy index designated the US as a breeding site for content producers. Stripe’s recent discoveries are one factor that explains this. The fintech industry, which provides financial infrastructure for companies and content creators alike, has discovered a 25% decline in the number of new US creators year over year. In reality, the data reveals a 13% drop in the proportion of content producers situated in the US (from 85 to 72%).
However, from a worldwide perspective, Thailand, Brazil, and Romania have seen an increase of about 11% in the number of content producers. Even nations like El Salvador, Tanzania, and Mozambique have begun monetizing content. One explanation offered by Stripe for this would be X’s accessibility and its monetisation scheme, which shares ad money with creators.
Simon Ellington, cofounder of the UK-based Connect platform Ko-fi, said on how the economy has developed over time: “In 2012, Ko-fi originated as a weekend project to allow developers accept contributions of coffee.
“Creators have joined since then from six different continents. For PlayStation streaming, they’re taking tips, and they’re also selling memberships to an online jazz club. On Ko-fi, creators are now making $100 million annually. That number was less than half the previous year.
Detailed breakdown by country
In 2021, Stripe said that there were 668,000 creators operating in the market across the 50 platforms it examined. Additionally, it predicted that artists would make over $10 billion in total.
At the same time, the fintech noted that during the previous two years, there has been a 41% increase in the number of content producers earning a living wage (above $69,000 annually) from their work.
To a certain extent, the practicality of making a living from content creation is still valid now as it was in 2021. The US continues to have the largest monthly recurring revenue (MRR) despite a decline in content developers. In the long run, this is beneficial since customers are able to plan ahead and assure financial security instead of receiving a paycheck every two weeks. However, the proportion of US creators making a living income has decreased from 4% in 2021 to 2.8% today.
According to Stripe’s most recent data, the Asia-Pacific (APAC) region is a hub for content producers. After the US, Hong Kong and Japan had the second and third quickest MRR growth rates. Hong Kong creators, with an average MRR of $6,600, have the highest MRR. The UK has $2,600 and the Netherlands has $3,200.
We’re staying
Stripe continues to have faith in the content development market despite what could be considered alarming indicators in the US. As more companies and platforms enter the market, it opens up new options for creators all around the world.
While Stripe acknowledges that AI and cryptocurrency are stealing attention from the content creation sector, it also makes the case that the sector can adapt and apply the technology. For instance, Runway, an AI platform for content makers that charges a monthly fee, declared that it was giving creators additional tools. Additionally, thanks to Braintrust, the gig economy can now accept cryptocurrency payments.
The content creation economy should be optimistic after taking all of this into account.
