Author:: hbr.org Full Title:: The Creator Economy Needs a Middle Class Tags:#media/article Link:: https://hbr.org/2020/12/the-creator-economy-needs-a-middle-class
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* highlights from 2021-02-02
* offer a form of Universal Creative Income (UCI)
* Ever since Wired magazine editor Chris Anderson first published his “Long Tail” theory in 2004, the idea has been endlessly reinforced, contradicted, and debated. He argued that the internet’s removal of physical limitations (local audiences, scarce shelf space) would empower niche products and creators to flourish.
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* In the search category, the phenomenon has proven true: Google has revealed that on a daily basis, 15% of all queries have never been searched before, a figure that has remained stable since 201
* Rosen argued that in markets with heterogeneous providers, like most creator economies, success accrues disproportionately to those on top: “lesser talent often is a poor substitute for greater talent … hearing a succession of mediocre singers does not add up to a single outstanding performance.” This phenomenon is further exacerbated by technology which lowers distribution costs: the best performers in a given field are freed from physical constraints like the size of concert halls — and can address an unlimited market and reap a greater share of revenue
* Some theories on why the long tail hasn’t flourished in a world of infinite digital products are that customers find it hard to know what to search for, and that most recommendation systems are basic, simply recommending what other users have consumed/purchased. The weakness of this system is that users rarely see anything outside of their interest areas and can get locked into filter bubbles; popular creators are further amplified, making it challenging for newcomers to break out.
* But notably, TikTok also stated that combatting filter bubbles and introducing diversity into the feed were direct goals, and it did so by injecting different videos into the For You Page that don’t match what users have engaged with before:
* The passion economy is rooted in and celebrates the notion of creator leverage: Because creators emphasize their individuality and offer unique services/products that are non-fungible, creators wield much more power over platforms than gig workers who are entirely replaceable.