Streaming and audio companies are investing millions of dollars to reimburse creator content, in order to take the lead in this growing entertainment field.
Key Details
- Amazon’s Amp app has introduced a creator fund that will pay individual users for producing regular content.
- Content creators will be required to produce at least one live show per month in order to merit consideration for payment.
- “A spokesperson for Amp [says] that millions of dollars have been allocated to reward Amp creators but did not provide a specific amount for the total creator fund. The company has also not disclosed the range of payments that creators may receive through the fund,” says Hollywood Reporter.
- “The fund follows similar efforts from companies like TikTok, Snap, and Meta. Spotify also experimented with a fund for its live audio creators but ultimately shut the fund down after a rebranding.”
- Amazon opened Amp earlier this year, which allows users to operate radio channels, DJ, and speak with callers
Why it’s news
Amp’s creator program is positioning itself as a potential power player in a valuable market.
As we previously reported, video content on Tik Tok, Instagram, and YouTube has become some of the most popular entertainment for young consumers.
These social media apps in turn pay their largest social media influencers to continue producing content that can drive advertising sales. YouTube spends billions of dollars per year paying its largest content producers.
“YouTube [says] it has paid out more than $30 billion to creators in the past three years from ads, merchandising, and other service features,” says Fortune.
Podcasting and streaming are extremely lucrative billion-dollar markets and apps are eager to draw in talent that can drive attention and ad sales towards their platforms.
“The global podcasting market size was valued at $11.46 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 31.1% from 2021 to 2028,” says GrandViewResearch.
Surprising statistics
ABC News reports that a Morning Consult survey of young people found that 86% of them wanted to become social media influencers.
“The business of social media influencing is projected to grow into a $6.5 billion industry by the end of the year. “Social media star” has become the fourth-most popular career aspiration for kids,” says ABC News.