What the “Creator Economy” Promises—and What It Actually Does - The New Yorker | Canada News Media
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What the “Creator Economy” Promises—and What It Actually Does – The New Yorker

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In contrast with ad-based arrangements, creators can get paid by their individual viewers, who might buy subscriptions, send tips, or crowdfund new projects.Photography by Sutipond Somnam / Shutterstock

The influencer is a fading stock character of the Internet’s commedia dell’arte. Often a conventionally attractive white woman, she shows off her aspirational life style via social-media channels. She accrues a large following, and then makes a living by getting companies to sponsor the content of her glamorous life. The cliché of the influencer emerged, during the twenty-tens, from multimedia-rich platforms like Instagram and Snapchat, where the goal was to forge as curated and polished an image as possible. Influencers were social-media users as celebrities, with much of the vanity and purposelessness that the comparison implies. By now, the connotations of being an influencer are mostly negative—edited selfies, vapid captions, faux relatability, staged private-jet photos, and unmarked sponsorships. Accordingly, social-media platforms are embracing a new buzzword as a successor: “creator.”

“Creator” is a term with a more wholesome air, conjuring an Internet in which we are all artisanal blacksmiths plying our digital craft. But what, exactly, the word implies beyond that is up for debate. According to Taylor Lorenz’s reporting for The Atlantic, the term was originally marketed by YouTube, as early as 2011, as an alternative to vocabulary like “YouTube star,” which seemed to imply that only a few famous figures could succeed on the platform. But it’s now used to describe practically anyone who is producing any form of content online. TikTok users are “TikTok creators.” Members of the invitation-only real-time voice-chat app Clubhouse are “audio creators.” OnlyFans, a marketplace mostly used for pornography, hosts “adult-content creators.”

Even proponents of the so-called “creator economy,” the lattice of new platforms and tools meant to serve creators, can’t quite agree on what the term means or whom it includes. Its rise has sparked a semantic debate that tends toward the solipsistic. “I think all influencers are creators; maybe not all creators are influencers,” Nicole Quinn, a partner at the venture-capital firm Lightspeed Venture Partners, told me. Lightspeed’s creator-economy investments include Cameo, a platform best known for custom video messages that celebrities sell to fans, and Outschool, a marketplace for online classes. For Quinn, the difference in terminology comes down to success: influencers are already famous; creators are striving to be. Li Jin, the founder of the creator-economy investment firm Atelier Ventures, instead defined creators in terms of revenue. “Anyone whose fame stems from online channels, if they are able to earn income through that influence, I consider that to be the creator economy.”

Despite its vagueness, “creator” is being adopted as a byword for a new generation of social-media spaces purportedly designed to support content producers in new ways. Where the ad-driven platforms Facebook and Twitter profit from our data and attention without giving much back, the likes of Clubhouse and OnlyFans promise to deliver a larger share of value to users by allowing for what Quinn, of Lightspeed, calls “direct monetization.” Instead of the company’s selling ads based on over-all engagement, creators can get paid by their individual viewers, who might buy subscriptions, send tips, or crowdfund new projects. The word “influencer” emphasized a person’s magnetic effect on her followers, a nebulous charisma easily turned toward marketing. “Creator,” by contrast, stresses that everyone posting on social media is producing something, pitching in to the collective effort of making user-generated platforms compelling and thus profitable. This idea has proved highly marketable: the creator economy has reportedly seen $1.3 billion in investment funding in 2021 thus far, nearly three times the funding it received in all of 2020.

Creator-economy businesses have devised various revenue models as alternatives to advertising. Subscription-driven platforms like Patreon, Substack, and Buy Me a Coffee charge a percentage of users’ income in return for publishing and paywalling their content. Apps like Linktree, Beacons, and Feedlink offer a service that, for a monthly fee, expands the Web site links that sit in the bios of social-media accounts, directing fans to a creator’s various content channels. Marketplaces for non-fungible tokens (N.F.T.s), like Foundation, Rarible, and SuperRare, allow creators to sell expensive digital-art objects in exchange for commission fees. On Twitch, a site where users can live-stream content like video games, and Heygo, a streaming site that provides a virtual proxy for travel, viewers can access video streams for free, with the option to send tips to the hosts. According to Quinn, March of 2020 was the “key inflection point” for this burgeoning economy, as the increased appetite for digital content and the loss of jobs in other industries during the pandemic prompted more people to try their luck as creators.

In some ways, the creator economy does appear to give more agency to the user. Rather than trying to game social-media algorithms, creators can theoretically rely on more dependable income from supporters. They can choose which kinds of work they take on, whether it be newsletters, livestreams, or audio chats. “They don’t have to care about fighting against the current of the platform,” Sam Yam, the co-founder of Patreon, a pioneer of the creator economy, said. In Yam’s mind, earning a living as a creator is an evolution of the so-called gig economy facilitated by companies like Uber and TaskRabbit. Followers are paying for access to someone’s unique talent or voice. “You care about the individual more than just the task that needs to be done,” Yam said. “It’s value exchanged for creativity.” The model promises a more human and less automated interaction. What were once called followers—the anonymous numbers racking up on a profile page like so many fungible eyeballs—are now customers, supporters, and patrons.

But this emerging field, in many ways, resembles a gig economy for digital content. Participants are still precarious workers, relying on the whims of corporations for their livelihoods. Much like an Uber driver or a twenty-tens Instagram influencer, the creator is responsible for her own marketing, health care, and tax contributions. She makes money for the platform that hosts her without receiving the legal and financial protections of employee status, or the stock options typically given to the platform’s engineers, designers, and managers. Meanwhile, the social-media giants are developing their own version of the creator economy in an attempt to keep users from fleeing to newer, smaller platforms. Last year, TikTok launched a Creator Fund to pay its users directly for popular content. Snapchat launched a similar program called Spotlight, which offers creators millions of dollars of compensation a month. This past week, Facebook, which owns Instagram, announced that it would pay out more than a billion dollars to users across its platforms by 2022.

Anshuman Iddamsetty, a former podcast producer who now runs a Patreon focussed on erotic self-portraiture, and who uses the pronouns “they” and “them,” told me that they make an adequate living from that account and an OnlyFans page. But they said that there’s a gap between the platforms’ message that anyone can “build an independent creative career,” as Patreon’s Web site touts, and the reality of being a solo entrepreneur. “Patreon doesn’t suddenly, magically make the act of creating your deliverables easier,” they said. Ambiguous guidelines can give platforms the power to block users or types of content at will; Patreon does allow some forms of adult content, but Iddamsetty, who describes themself as a “fat erotic artist,” has run into unexpected barriers. Creator-economy hype is relevant “only if you’re a certain kind of creator with a certain kind of product,” they said.

Even Yam, of Patreon, recognizes the limitations of the burgeoning field. He anticipates a future in which both the social-media giants and the creator-economy brands are avoidable altogether. Each creator will instead have her own custom-built platform, “their own world top to bottom,” from the underlying technology to the published content—an “ownership economy.” For the time being, though, the bulk of users will continue to rely on the preëstablished attention economy for the bulk of their digital consumption. “Facebook, Instagram, YouTube, those are just as dominant as ever,” Jin said. “Today, no one finds a person on Patreon; you go there after you’ve found them.” In other words, to be a creator, you still have to be an influencer after all.


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Economy

Statistics Canada reports wholesale sales higher in July

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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B.C.’s debt and deficit forecast to rise as the provincial election nears

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VICTORIA – British Columbia is forecasting a record budget deficit and a rising debt of almost $129 billion less than two weeks before the start of a provincial election campaign where economic stability and future progress are expected to be major issues.

Finance Minister Katrine Conroy, who has announced her retirement and will not seek re-election in the Oct. 19 vote, said Tuesday her final budget update as minister predicts a deficit of $8.9 billion, up $1.1 billion from a forecast she made earlier this year.

Conroy said she acknowledges “challenges” facing B.C., including three consecutive deficit budgets, but expected improved economic growth where the province will start to “turn a corner.”

The $8.9 billion deficit forecast for 2024-2025 is followed by annual deficit projections of $6.7 billion and $6.1 billion in 2026-2027, Conroy said at a news conference outlining the government’s first quarterly financial update.

Conroy said lower corporate income tax and natural resource revenues and the increased cost of fighting wildfires have had some of the largest impacts on the budget.

“I want to acknowledge the economic uncertainties,” she said. “While global inflation is showing signs of easing and we’ve seen cuts to the Bank of Canada interest rates, we know that the challenges are not over.”

Conroy said wildfire response costs are expected to total $886 million this year, more than $650 million higher than originally forecast.

Corporate income tax revenue is forecast to be $638 million lower as a result of federal government updates and natural resource revenues are down $299 million due to lower prices for natural gas, lumber and electricity, she said.

Debt-servicing costs are also forecast to be $344 million higher due to the larger debt balance, the current interest rate and accelerated borrowing to ensure services and capital projects are maintained through the province’s election period, said Conroy.

B.C.’s economic growth is expected to strengthen over the next three years, but the timing of a return to a balanced budget will fall to another minister, said Conroy, who was addressing what likely would be her last news conference as Minister of Finance.

The election is expected to be called on Sept. 21, with the vote set for Oct. 19.

“While we are a strong province, people are facing challenges,” she said. “We have never shied away from taking those challenges head on, because we want to keep British Columbians secure and help them build good lives now and for the long term. With the investments we’re making and the actions we’re taking to support people and build a stronger economy, we’ve started to turn a corner.”

Premier David Eby said before the fiscal forecast was released Tuesday that the New Democrat government remains committed to providing services and supports for people in British Columbia and cuts are not on his agenda.

Eby said people have been hurt by high interest costs and the province is facing budget pressures connected to low resource prices, high wildfire costs and struggling global economies.

The premier said that now is not the time to reduce supports and services for people.

Last month’s year-end report for the 2023-2024 budget saw the province post a budget deficit of $5.035 billion, down from the previous forecast of $5.9 billion.

Eby said he expects government financial priorities to become a major issue during the upcoming election, with the NDP pledging to continue to fund services and the B.C. Conservatives looking to make cuts.

This report by The Canadian Press was first published Sept. 10, 2024.

Note to readers: This is a corrected story. A previous version said the debt would be going up to more than $129 billion. In fact, it will be almost $129 billion.

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Mark Carney mum on carbon-tax advice, future in politics at Liberal retreat

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NANAIMO, B.C. – Former Bank of Canada governor Mark Carney says he’ll be advising the Liberal party to flip some the challenges posed by an increasingly divided and dangerous world into an economic opportunity for Canada.

But he won’t say what his specific advice will be on economic issues that are politically divisive in Canada, like the carbon tax.

He presented his vision for the Liberals’ economic policy at the party’s caucus retreat in Nanaimo, B.C. today, after he agreed to help the party prepare for the next election as chair of a Liberal task force on economic growth.

Carney has been touted as a possible leadership contender to replace Justin Trudeau, who has said he has tried to coax Carney into politics for years.

Carney says if the prime minister asks him to do something he will do it to the best of his ability, but won’t elaborate on whether the new adviser role could lead to him adding his name to a ballot in the next election.

Finance Minister Chrystia Freeland says she has been taking advice from Carney for years, and that his new position won’t infringe on her role.

This report by The Canadian Press was first published Sept. 10, 2024.

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