The Innovation Economy of Digital Creators: Monetization Models across Platform Economies

Abstract

The digital creator economy has emerged as a transformative force in the global marketplace, reshaping how individuals and businesses generate revenue. With market valuations soaring to an impressive $205.25 billion in 2024, projections indicate a staggering growth trajectory, potentially reaching $1,345.54 billion by 2033. This research delves into the monetization strategies employed by digital creators across major platforms, focusing specifically on three key models: subscription systems like Patreon, advertising-based revenue frameworks such as those on YouTube, and the innovative merchandise-driven approaches emerging on platforms like TikTok. By conducting a comparative analysis of these platform-specific monetization mechanisms, this study uncovers the distinct advantages and limitations associated with each model. For instance, subscription-based platforms are shown to provide creators with more predictable and stable revenue streams, fostering a closer relationship with their audience. In contrast, advertising-based models tend to offer a broader outreach but often lack the financial stability that creators desire. Additionally, merchandise-driven monetization represents a burgeoning trend that promotes creator independence, allowing them to diversify their revenue sources beyond traditional platform dependencies. Ultimately, this research enhances our understanding of the evolving landscape of digital entrepreneurship, offering valuable insights for creators, platforms, and policymakers as they navigate the complexities of the creator economy.

Keywords: creator economy, digital monetization, platform economics, subscription models, content creation, digital entrepreneurship