Social media creators are turning to monthly subscription services to generate revenue directly from their followers in an attempt to find a stable source of income in an increasingly competitive and volatile market.
The creator economy peaked in September 2021, according to research published this month by the Bank of America Institute. While the average monthly income for content creators has increased over the past three years, a typical, full-time U.S. employee makes five times as much in monthly income on average.
“This suggests that it’s rare to earn a full-time wage in content creation — let alone get rich,” said the research, which was also conducted by the Bank of America Institute, a think tank that conducts its research using Bank of America customer data.
Analysts at the Bank of America Institute attribute this to a slowdown in paid partnerships, a more competitive market for creators, a decline in online viewership since the pandemic and a concentration of paid partnerships among the top creators.
While internet virality is unpredictable, turning content creation into a full-time career requires meeting certain financial needs, like the ability to pay monthly bills, content creators told CNBC. As a result, creators are looking to diversify their revenue streams, and in addition to paid partnerships, many content creators are increasingly looking to monthly subscription platforms like Substack and Patreon for consistency in their monthly income.
Substack and Patreon have emerged as attractive options because they enable creators to charge their followers directly for their content. Creators can offer their followers different tiers of subscriptions for monthly fees, with each tier including different perks. Since its launch in 2013, Patreon has paid creators over $8 billion, while Substack claims to host more than 4 million paid subscribers.
On TikTok and Meta’s Instagram, creators have to navigate algorithmic models that control when their content is shown, making income from those apps highly volatile. Earnings can fluctuate dramatically, spiking or plummeting based on how these platforms choose to promote their content.
“I can’t rely on that to be what pays my bills,” said Molly Burke, a creator with more than 4 million followers across her social apps. “As an entrepreneur, as a business owner, as a creator, I have to figure out how I’m going to sustain this as a career for as long as possible.”
Molly Burke, a creator known for her videos about living with blindness and navigating daily life.
Social media platforms increasingly rely on algorithms to decide what content users see, based on their past interactions and preferences. These algorithms analyze user behavior to create personalized content feeds, which often prioritize posts that are likely to generate engagement, such as likes or shares.
As a result, many creators feel pressured to make content that caters to the algorithm, even if they believe it lowers the quality of their work, content creators said.
“It ebbs and flows,” Burke said. “Sometimes my TikToks are popping and I’m getting all the views, and then that algorithm just dips for a bit.”
While nearly half of creators work full time, most rely heavily on brand deals for income, with more than two-thirds having brand partnerships as their primary revenue source, according to a separate study by influencer marketing agency NeoReach. The study found that more than 48% of creators earn $15,000 or less annually, even as the global influencer market reached $21 billion in 2023. There are more than 50 million content creators worldwide, Goldman Sachs said in April 2023.
Burke, a creator known for her videos about living with blindness and navigating daily life, has been producing content on the internet for five years. While it’s not her biggest income stream, she uses her Patreon revenue to help cover essential expenses, including rent.
“I feel extremely lucky and grateful that it is a revenue stream that I can rely on, that I know at the bare minimum I can get my rent covered this month,” she said.
Subscription platforms like Patreon address this by allowing creators to bypass the algorithm entirely, connecting directly with their most loyal fans who are willing to pay for exclusive content.
“Membership alone is a huge business for creators,” Patreon founder and CEO Jack Conte said in an interview with CNBC. “It’s creating predictable, reliable, huge sources of revenue for creators at a degree in scale that we’ve never seen before.”
Zach Kornfeld and Keith Habersberger of the Try Guys
JD RENES
The Try Guys, a comedy group known for their challenge-based videos, have 8 million subscribers and 2.7 billion views on YouTube, but in May, they announced the launch of their own streaming service called 2nd Try. The group moved most of its new videos behind a $5-a-month paywall, where subscribers can watch the new content without ads.
An illustration photo shows Sora 2 logo on a smartphone.
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The Creative Artists Agency on Thursday slammed OpenAI’s new video creation app Sora for posing “significant risks” to their clients and intellectual property.
The talent agency, which represents artists including Doja Cat, Scarlett Johanson, and Tom Hanks, questioned whether OpenAI believed that “humans, writers, artists, actors, directors, producers, musicians, and athletes deserve to be compensated and credited for the work they create.”
“Or does Open AI believe they can just steal it, disregarding global copyright principles and blatantly dismissing creators’ rights, as well as the many people and companies who fund the production, creation, and publication of these humans’ work? In our opinion, the answer to this question is obvious,” the CAA wrote.
OpenAI did not immediately respond to CNBC’s request for comment.
The CAA said that it was “open to hearing” solutions from OpenAI and is working with IP leaders, unions, legislators and global policymakers on the matter.
“Control, permission for use, and compensation is a fundamental right of these workers,” the CAA wrote. “Anything less than the protection of creators and their rights is unacceptable.”
Sora, which launched last week and has quickly reached 1 million downloads, allows users to create AI-generated clips often featuring popular characters and brands.
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OpenAI launched with an “opt-out” system, which allowed the use of copyrighted material unless studios or agencies requested that their IP not be used.
CEO Sam Altman later said in a blog post that they would give rightsholders “more granular control over generation of characters.”
Talent agency WME sent a memo to agents on Wednesday that it has “notified OpenAI that all WME clients be opted out of the latest Sora AI update, regardless of whether IP rights holders have opted out IP our clients are associated with,” the LA Times reported.
United Talent Agency also criticized Sora’s use of copyrighted property as “exploitation, not innovation,” in a statement on Thursday.
“There is no substitute for human talent in our business, and we will continue to fight tirelessly for our clients to ensure that they are protected,” UTA wrote. “When it comes to OpenAI’s Sora or any other platform that seeks to profit from our clients’ intellectual property and likeness, we stand with artists.”
In a letter written to OpenAI last week, Disney said it did not authorize OpenAI and Sora to copy, distribute, publicly display or perform any image or video that features its copyrighted works and characters, according to a person familiar with the matter.
Disney also wrote that it did not have an obligation to “opt-out” of appearing in Sora or any OpenAI system to preserve its rights under copyright law, the person said.
The Motion Picture Association issued a statement on Tuesday, urging OpenAI to take “immediate and decisive action” against videos using Sora to produce content infringing on its copyrighted material.
Entertainment companies have expressed numerous copyright concerns as generative AI has surged.
Universal and Disney sued creator Midjourney in June, alleging that the company used and distributed AI-generated characters from their movies despite requests to stop. Disney also sent a cease-and-desist letter to AI startup Character.AI in September, warning the company to stop using its copyrighted characters without authorization.
People walk past a billboard advertisement for YouTube in Berlin, Germany, on Sept. 27, 2019.
Sean Gallup | Getty Images
YouTube is offering creators who were banned from the platform a second chance.
On Thursday, the Google-owned platform announced it is rolling out a feature for previously terminated creators to apply to create a new channel. Previous rules led to a lifetime ban.
“We know many terminated creators deserve a second chance,” wrote the YouTube Team in a blog post. “We’re looking forward to providing an opportunity for creators to start fresh and bring their voice back to the platform.”
Tech companies have faced months of scrutiny from House Republicans and President Donald Trump, who have accused the platforms of political bias and overreach in content moderation.
Last week, YouTube agreed to pay $24.5 million to settle a lawsuit involving the suspension of Trump’s account following the U.S. Capitol riots on Jan. 6, 2021.
YouTube said this new option is separate from its already existing appeals process. If an appeal is unsuccessful, creators now have the option to apply for a new channel.
Approved creators under the new process will start from scratch, with no prior videos, subscribers or monetization privileges carried over.
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Over the next several weeks, eligible creators logging into YouTube Studio will see an option to request a new channel. Creators are only eligible to apply one year after their original channel was terminated.
YouTube said it will review requests based on the severity and frequency of past violations.
The company also said it will consider off-platform behavior that could harm the community, such as activity endangering child safety.
The program excludes creators terminated for copyright infringement, violations of its Creator Responsibility policy or those who deleted their accounts.
YouTube’s ‘second chance’ process fits with a broader trend at Google and other major platforms to ease strict content moderation rules imposed in the wake of the pandemic and the 2020 election.
In September, Alphabet lawyer Daniel Donovan sent a letter to House Judiciary Chair Jim Jordan, R-Ohio, that announced the platform had made changes to its community guidelines for content containing Covid-19 or election-related misinformation.
The letter also claimed that senior Biden administration officials pressed the company to remove certain Covid-related videos, saying the pressure was “unacceptable and wrong.”
YouTube ended its stand-alone Covid misinformation rules in December 2024, according to Donovan’s letter.
Google’s former CEO Eric Schmidt spoke at the Sifted Summit on Wednesday 8, October.
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Google‘s former CEO Eric Schmidt has issued a stark reminder about the dangers of AI and how susceptible it is to being hacked.
Schmidt, who served as Google’s chief executive from 2001 to 2011, warned about “the bad stuff that AI can do,” when asked whether AI is more destructive than nuclear weapons during a fireside chat at the Sifted Summit
“Is there a possibility of a proliferation problem in AI? Absolutely,” Schmidt said Wednesday. The proliferation risks of AI include the technology falling into the hands of bad actors and being repurposed and misused.
“There’s evidence that you can take models, closed or open, and you can hack them to remove their guardrails. So in the course of their training, they learn a lot of things. A bad example would be they learn how to kill someone,” Schmidt said.
“All of the major companies make it impossible for those models to answer that question. Good decision. Everyone does this. They do it well, and they do it for the right reasons. There’s evidence that they can be reverse-engineered, and there are many other examples of that nature.”
AI systems are vulnerable to attack, with some methods including prompt injections and jailbreaking. In a prompt injection attack, hackers hide malicious instructions in user inputs or external data, like web pages or documents, to trick the AI into doing things it’s not meant to do — such as sharing private data or running harmful commands
Jailbreaking, on the other hand, involves manipulating the AI’s responses so it ignores its safety rules and produces restricted or dangerous content.
In 2023, a few months after OpenAI’s ChatGPT was released, users employed a “jailbreak” trick to circumvent the safety instructions embedded in the chatbot.
This included creating a ChatGPT alter-ego called DAN, an acronym for “Do Anything Now,” which involved threatening the chatbot with death if it didn’t comply. The alter-ego could provide answers on how to commit illegal activities or list the positive qualities of Adolf Hitler.
Schmidt said that there isn’t a good “non-proliferation regime” yet to help curb the dangers of AI.
AI is ‘underhyped’
Despite the grim warning, Schmidt was optimistic about AI more broadly and said the technology doesn’t get the hype it deserves.
“I wrote two books with Henry Kissinger about this before he died, and we came to the view that the arrival of an alien intelligence that is not quite us and more or less under our control is a very big deal for humanity, because humans are used to being at the top of the chain. I think so far, that thesis is proving out that the level of ability of these systems is going to far exceed what humans can do over time,” Schmidt said.
“Now the GPT series, which culminated in a ChatGPT moment for all of us, where they had 100 million users in two months, which is extraordinary, gives you a sense of the power of this technology. So I think it’s underhyped, not overhyped, and I look forward to being proven correct in five or 10 years,” he added.
His comments come amid growing talk of an AI bubble, as investors pour money into AI-focused firms and valuations look stretched, with comparisons being made to the dot-com bubble collapse of the early 2000s.
Schmidt said he doesn’t think history will repeat itself, however.
“I don’t think that’s going to happen here, but I’m not a professional investor,” he said.
“What I do know is that the people who are investing hard-earned dollars believe the economic return over a long period of time is enormous. Why else would they take the risk?”