Define your future in The New Content Economy
As the wildfires of change burn down the traditional entertainment industry business models, C21’s editor-in-chief & managing director anticipates a brave new world of content creation, which demands transformational change.
For context, the fundamental reset taking place in the global content business is a mere trifle set against the existential threat to mankind brought on the wings of climate change, the erosion of truth through an ever-more-corrupt social media, and the escalating political and commercial quest for power in an increasingly dysfunctional world.
It’s ultimately not so much that you won’t get your show commissioned because ‘we have something very similar in development’ or that ‘budgets have been cut,’ but rather we’ll all be living in the woods, surviving on berries and campfire stories about the good ol’ days while crops burn, ice caps melt and the last polar bear slips beneath the waves.
So chin up. Let’s keep things in perspective.
In our own back yard, the devastation currently being wreaked on the business previously known as television is without precedent.
But the collapse of traditional models is simply the passing of power from one dynasty to the next, driven by technological and social change (which is also driven by technology) as an old world fades and a new one emerges.
Trouble is, of course, most of us are part of that old world, and there’s a lot of baggage to shake off to be of consequence in the new one.
Change has come because the fragmentation of media and entertainment makes it virtually impossible for one piece of content to demonstrate an acceptable return on investment for the writer, producer, financier, distributor, channel or platform supporting it. As it turns out, you can have way too much of an average thing.
That means, by and large, your show isn’t worth enough to anyone for it to be viable under the traditional television business model going forwards. There are exceptions. But they’re few and far between.
Fragmentation is exacerbated by the migration of audiences to the fresher screens of mobile- and internet-delivered entertainment, which in itself redefines the sort of content younger audiences in particular want to watch.
There are thousands more things to watch on TV and millions less prepared to do so.
The media is, once again, part of the message.
Other TV channels and platforms are not taking away eyeballs, the creator economy is
And, of course, money follows the eyeballs. Advertisers are now more likely to do a deal with an influencer to reach their demonstratable one million followers than spend 10 times that on a 30-second spot a few hundred people might watch on television.
TV has been called out. And it’s only got itself to blame. Derivative, formulaic, risk-averse programming has bloated schedules for years. It’s hardly surprising the audience – and the money – has decided enough is enough.
But from this primordial sludge a new generation of content creator is emerging. Born of influencers but now maturing to take an increasingly bold content offering direct to the audience without the need for the approval of a commissioner, The Creator Economy is coming of age.
With the barriers removed this creator economy is forecast to grow from US$100bn globally in 2023 to US$250bn by 2028.
There are currently estimated to be 50 million creators globally, with around two million earning a full-time salary from their work.
YouTube is becoming the number one platform for TV viewing worldwide. Social video is the future of content
Platforms like YouTube, TikTok, Snap, Patreon, Substack, OnlyFans, Facebook and Instagram are embracing the emerging economy and creating new revenue models to facilitate further growth.
And the rise of micro- and nano-influencers, which prioritise engagement over reach, continues to attract interest from brands at the expense of ‘television.’
Creator-first ecosystems are set to grow dramatically in the years to come.
Imagine that. ‘Creator first,’ that’s ‘producer first’ in case you missed it. And as the most experienced sector in the ecosystem, the rise of The Creator Economy is only good news for those previously known as ‘television producers.’
AI will supercharge the democratisation of content creation, providing those who want to enter the space with everything they need to make a show as ‘professionally’ as a mainstream TV drama for a fraction of the price. It will also provide that opportunity to the traditional business, allowing it to make things cheaper and better in order to meet the challenges of the more competitive market.
There’s a very good reason we’ve not seen the rollout of the generative AI technologies that will redefine the content business yet.
Sora can create video that is in indistinguishable from real life from text prompts
If OpenAI’s text-to-video technology, Sora, was already out there, and others like it, there would have been several hundred second debates between Trump and Harris, and nobody would be able to tell truth from fiction.
The major players are waiting until after the US election to push their generative AI tools to market, for the simple reason such tools are too powerful and potentially dangerous to do so beforehand.
But once that election is over, the gloves are off. And there will be no going back.
Rights and IP ownership will, of course, be central to the generative AI debate. But there is already considerable activity in the acquisition of libraries by AI technology platforms to ensure what they scrape is free of copyright restraints. Expect a lot more of that in years to come.
Back in the real world, Millennials are now in their mid-40s, the oldest Gen Z-ers are approaching 30 and Gen A (born 2010-24) are about to start calling the shots. Who knows what will happen with Gen Beta (2025-39). Can you imagine being born into the world in 2025?
We are clearly in a stage of rapid transformational change. So what happens next and how can you stake a claim in The New Content Economy?
Here are 10 things to consider:
1. Make it cheaper
AI will help you make shows for 75% less than your current budget. Without it you will not be able to compete. Get into it before it’s too late. It’s coming fast, and when Sora arrives, text-to-video will change the game beyond recognition.
2. Make it smarter
AI will also allow you to create multiple versions for different territories, platforms and audiences, extending your opportunity across markets and platforms previously not available. Understand how to do that now and embed it in your workflow.
3. Think Elastic: it’s not Digital First it’s Everything Together
Don’t buy into the already-tired notion of ‘digital first.’ Content should be conceived as something that works EVERYWHERE. It’s ‘elastic,’ and it doesn’t stop at the edge of the screen. Content is manifestos for tribes and it needs to cross borders without a passport. Think different.
4. Find new partners
NEW partnerships have never been more important. Coproduction is vital, but not just within the TV space. Find your window and bring your best game to the table to collaborate with new partners from all corners of the world and from every sector: brands, retail, tech, celebrity, games, fashion, music.
5. Talk to commissioner brands
Money talks. And advertisers have a fresh appetite for backing content. They are the new commissioners and what was once the cheese of branded entertainment may become the main course of content development.
6. You are a creator – go direct to your audience
TV writers and producers are part of the creator economy. They just need to reimagine the commercial model. It doesn’t need to be commissioned – it just needs to find its audience, everywhere. Self-publishing is already the future of books, it’s also the future of TV.
Understand YouTube, Snap, TikTok, Instagram, Patreon, Substack, FAST and every other route to market and take your content there. When you walk into a room with a pre-defined audience you walk in with a swagger. Don’t creep in unannounced.
7. Be comfortable with the third window
TV still has a role to play. You can have a seat at the table without being first. Accept it and embrace new partnerships with new creators.
8. Start dating again
There are lots more fish in the sea. But you need to swim in a new ocean.
9. Celebrity and legacy IP will be replaced by new voices and authenticity
You don’t need a heritage entertainment brand to succeed in The New Content Economy, you need a fresh voice. Authenticity is replacing celebrity and talent comes from the ground up.
10. There’s no going back – get over it!
This is not a blip. It’s over. You need to move on. But this is not the end, it’s the end of the beginning. The old models will not work in The New Content Economy, so stop trying to make them happen – they’re not going to happen.