How AI is Shaping the Creator Economy

As AI generated content increasingly floods user-generated content (UGC) platforms like YouTube and TikTok, some creators are considering a move to premium streaming services. The potential for a "mass exodus" of creators from these platforms has been raised, with concerns that only the biggest names, like MrBeast, and "AI junk" will remain.

Premium streaming platforms, such as Netflix, Disney+, and Prime Video, offer a more controlled environment for advertisers, with less risk of AI content muddying the waters. These platforms provide authenticated and addressable audiences, which could be particularly valuable for advertisers as third-party cookies are phased out by the end of 2024.

While UGC platforms may boast higher engagement and interactivity, premium streaming services offer brand-safe content and global reach. Ben Woods, video analyst at Midia Research, notes that "streaming TV services can provide global reach that competes with the social video platforms."

Moreover, recent research from Comcast Advertising suggests that viewers are 58% more likely to recall ads in a professional, premium-content environment compared to a UGC setting. As streaming TV viewership continues to grow, accounting for 37.7% of TV usage in the U.S. as of February 2024, advertisers may find increased value in the authenticated audiences and reliable content offered by premium streaming platforms.

The success of popular YouTuber MrBeast's upcoming game show on Amazon Prime Video could pave the way for more high-profile creators to explore opportunities in premium streaming. MrBeast, with 247 million subscribers, wants to "prove YouTubers and creators can succeed on other platforms." However, streaming services will need to be open to granting more creative control to these creators to ensure successful partnerships.

Paul Pastor, co-founder and chief business officer of Quickplay, an over-the-top technology company, compares this potential trend to athletes who have turned their personal brands into business empires that extend into television. He believes that collaborations between social-media-driven talent and traditional publishing companies will continue to grow.

As the digital advertising landscape evolves, with the rise of AI and the decline of third-party cookies, premium streaming platforms may offer advertisers a more stable and valuable alternative to UGC platforms. The potential migration of creators to these platforms could further solidify their position in the advertising ecosystem, providing authenticated audiences, brand-safe content, and global reach.

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