By Prayag Singh, Co-founder, SOCLLY
Two hundred million people now consider themselves social media content creators due to the rapid expansion of the creator economy over the past ten years. Bloggers, vloggers, and leaders in the community are examples of social media influencers. However, it might be challenging for creators to obtain autonomy.
Traditionally, content producers used third-party platforms to interact with their fans and monetize their output. With time, it became clear that several social media sites, including YouTube, used unethical revenue-sharing practices. Consider the web2 music scene as it exists today. It’s still mainly unrewarding for independent creators and leaves too much room for hope despite all its conveniences and networking possibilities.
Did you know that Spotify, a leading digital music streaming service, pays musicians just $0.003 for each stream?
Take social media platforms like Instagram or TikTok. No matter how viral a photo or video gets, the people who created it earn little to nothing while the platforms continue consolidating their monopolies using consumer data. The future of Web3 is promising. By selling directly to their following and choosing how to package and market their work, creators may set their own prices and cut out the intermediaries who typically take home the lion’s share of the money. And this isn’t some distant pipe dream either; the infrastructure is in there, and more and more creators are embracing this business model every day.
Here are some thoughts on Web 3.0 and how it impacts the creator economy.
Web 3.0 – An Overview
The World Wide Web has been around since 1983 when Tim Berners-Lee created Web 1.0, which was released in 1989. The term Web 2.0, commonly referred to as the reading/writing web was first used by Dale Dougherty in 2004.
Dr. Gavin Wood, a computer scientist, coined the term “Web 3.0” in 2014 to describe his vision for the internet’s future; where he described it to be more democratic and decentralized than it is today and won’t be under the control of a small number of powerful companies like Amazon and Microsoft. It has taken some time for Web 3.0 to evolve and be used, just as it did for earlier W3C iterations. As part of Web 3.0, it is anticipated that machines will be able to learn about artificial intelligence, blockchain technology, and other cutting-edge technologies.
In the Web 3 era, consumers can obtain the quickest and most accurate information while browsing in the best possible way.
Web 3.0 and the Creator Economy: 7 Key Impacts
Ownership of Content
Web3, at its core, places ownership in the hands of its users and creators. Thanks to the utilization of blockchain technology and the decentralization of web curation, a centralized supervision mechanism won’t be necessary, allowing content producers to share or sell their work however they see appropriate.
Optional Flexible Monetization
One of the most crucial elements determining an industry’s economic health is its revenue. In Web 3.0, creators can create their content and choose whether or not to monetize it. You have limited options if you depend on third-party sites like YouTube, AdSense, and centralized social media for monetization.
Royalties and Contracts
Artists and video producers can now sell their works on Tiktok, Microsoft Store, Google Play Store, and Apple’s iTunes Store. Streaming slots online is even becoming an option for some creators looking to supplement their income. Once they are familiar with Web 3, the original creators can earn the whole amount by getting in touch with the customers directly.
New Revenue sources
A significant component of Web 3.0’s attractiveness is the revenue generated through innovative business models and channels. In the past, artists used dealers, shops, curators, and broadcasters to exhibit and sell their work. Due to their high fees, the artists earned virtually little in return.
Digital counterparts of these intermediaries include Apple, Amazon, and any other successful marketplace that takes a substantial percentage of sales. Only 2.5% of sales are handled through the largest NFT marketplace, OpenSea, with the remaining sale going to the artist. By keeping track of every transaction involving an artwork, the blockchain offers complete transparency regarding its provenance and worth.
The adoption of Web3, aka Blockchain technology, is increasing. Web 3 brings a significant evolution in the future of labor and social value exchange by allowing creators to have a say in whether they choose to share or keep their data. Cryptocurrencies will ultimately serve as a gateway for online transactions under Web 3.0. Decentralizing your content rather than splitting your revenue with centralized content management services is another wise financial move.