Why Creators Will Own What They Create (Guest Blog)
Amazon acquires the legendary catalog from MGM studios. Warner and Discovery merge. AMC Entertainment received an infusion of $ 250 million to modernize its theaters and buy new properties.
Call it whatever you like, but it’s clear the entertainment landscape is experiencing an earthquake. Say hello to the new Hollywood. None of this happened in a vacuum. Studios, so long stuck in silos, are in a showdown with streaming platforms fighting for vertical integration. The market is forcing the old guard to catch up. We are seeing the addition, deletion, restructuring and combination of companies and studios to amass subscribers and respond to a new generation of consumers that is leading to the democratization of everything.
One result here is that a new phenomenon is emerging: the economy of creators. For centuries artists have created art, and much of the money earned has gone to someone else. Writers wrote, painters painted, singers sang, while book publishers, art galleries and record labels profited, sometimes through agents and managers committing fraud, theft and others. crimes. Someone else was still running the show.
In the designer economy, artists are equipped like never before to strike, own, market, and market anything they create. They take direct control of consumers to meet public demand, with rock-solid security and monetizing every step of the way. Former outsiders are now insiders, with business ecosystems building around them.
Over the next few years, the designer economy will grow exponentially based on the maturity of Gen Z and technological advancements. Here are the six converging forces that are at the origin of this phenomenon.
- Meta-technology. Everything is moving at breakneck speed – AI, blockchain, XR, advanced analytics, you name it. New social media platforms are launching features ranging from live and video streaming to audio chat capabilities, all with monetization and brand integration. Also beware of the metaverse, where entire virtual infrastructures will allow creativity and commerce. And once 5G is fully deployed – by 2025 it is estimated that 1.7 billion people will have its services, with buffering and such issues doomed to go away – it will propel anything else even faster. is creative. The tools of technology will put even more control and power in the hands of creators. Creators will become autonomous, from the studios to themselves.
- Mass adoption driven by the coronavirus pandemic. Yes, let’s give credit where credit is due. A single nasty pathogen has extended and accelerated digital transformations in the entertainment industry that have already been underway for years. Everything that happens now was going to happen sooner or later, but instead it happened much sooner. Consumers who would have taken years to go digital otherwise have adopted en masse.
- Generation Z. Born between 1997 and 2012 and weaned from a virtually lived life, they are only reaching majority now as adolescents and young adults. These are huge influence hunters who transact virtually – content, music, merch, games. As such, they are as responsible as any other consumer segment for the demand for multiple screens and immersive experiences.
- New influencers. Suddenly, thanks to social networks, everyone is a potential influencer. The big critics – of cinema, television, music – count less and less each year. We all now have the right to play the role of expert and influence others to do what we do. No one needs the permission of a guard to speak. The public is in the driver’s seat, and brands are reacting and buying that influence like never before.
- The growing premium on authenticity. Streamers, hungry for novelty, are increasingly focusing on discovering, producing and distributing original stories. As a result, the entertainment industry as a whole is increasingly going grassroots, meeting creators where they live. Historically marginalized groups are creating a new Hollywood, while owning their own content and brands.
- Organize autonomous communities. Creators now have the tools to securely distribute content to communities that they themselves have established and organized. And thanks to advancements in blockchain, they can be connected forever to anything they create, while still receiving royalties as they are sold and shared. It’s the equivalent of self-publishing a book. Artists raise capital and transform from employees to entrepreneurs – to become CEOs.
So welcome. The new Hollywood is tech-savvy, diverse, multiscreen, nostalgic and intergenerational, with brands and experiences integrated vertically. What we’re seeing now are studios and content creators vying for a position, on an unprecedented scale, to influence each other. This change will fulfill the promises that the early defenders of the World Wide Web predicted – that Internet access would democratize life as we know it.
Entire industries – video game makers, book and magazine publishers, theater and film production companies – are moving towards decentralization. Mass innovation is leveling the playing field once and for all. Free enterprise is truly free.
Companies that support the creative economy will have a decisive competitive advantage. Those who do otherwise will simply be left behind.
Michelle Ross is CEO of Vision Media, a company at the forefront of today’s digital transformation in media and entertainment, fueling cutting-edge new media technologies for the world’s most demanding brands. She is an industry insider who provides expert information on the seismic changes in Hollywood today – the rapidly changing media environment, the mega-merger mania, and the global entertainment landscape.