Are Creators Recession-Proof?
The creator economy — in it’s current boom — hasn’t been around for a recession. Which begs the question…
What will happen to creators when a recession hits?
Here are a couple of potential outcomes:
More creators will start. Being a creator is permissionless. You can start while working a day job or collecting unemployment. We saw this last March with Substack newsletters and TikTok accounts. Being a creator is increasingly becoming a brilliant hedge and source of leverage.
The cream will rise to the top. Top-tier creators will crush during a recession, buying up all kinds of distressed assets with excess cash, while smaller ones will struggle to get deals.
Top-tier creators will bank roll smaller creators in exchange for IP. Imagine MrBeast just goes and buys up 50% of 10 channels he believes will be really successful over the next 10 years.
Creators will be forced to look for other ways to monetize. We’ll see a merging between gig and creator economies. This will be everything from freelance editing to consulting.
Views will increase, but CPMs and consumer spending will go down. This means, a creator’s…
