A Rising Giant

The creator economy—which is part of the creative economy, encompasses independent content creators, influencers, and digital entrepreneurs—has emerged as a formidable force in the global digital landscape.

Recognising its potential, the Union government has recently unveiled a series of initiatives aimed at bolstering this sector. The initiatives focus on funding skill development, upgrading the production and expanding to the global market. The missing key elements include content ownership policies, sustainable economic integration at the grassroots level, privacy and ensuring factual accuracy in content creation.

According to the statistics and research studies, the global creator economy was valued at USD 250 billion as of 2024, with projections suggesting it could reach USD 480 billion by 2027. With over 200 million active content creators worldwide, the digital landscape is diverse and dynamic. Revenue streams from tipping, subscriptions, and merchandising on social media are projected to reach USD 160 million, USD 270 million, and USD 450 million, respectively. Influencer marketing is expected to spend up to USD 7 billion by 2024, marking a 17 per cent increase over the previous year. 54.9 per cent of creators identified as full-time, indicating a growing commitment to content creation as a primary income source. However, earnings distribution varies significantly, with only 9 per cent of independent creators earning over USD 100,000 last year.

In a landmark move, the Union government announced an allocation of USD 1 billion fund dedicated to supporting the creator economy. The initiative aims to provide content creators with access to capital, enhance their skills, and facilitate their expansion into global markets. Additionally, Rs 391 crore has been allocated for the establishment of the Indian Institute of Creative Technologies in Mumbai, underscoring the commitment to nurturing talent in the media and entertainment sector.

These measures align with the country’s strengths in media and entertainment, drawing parallels to the global success achieved by countries like South Korea and Spain. The initiative seeks to capitalise on the growth potential of user-generated content, which is expected to reach USD 1.1 billion by 2027.

Need for Key Policy Interventions

As the creator economy expands, questions surrounding content ownership and copyright have come to the forefront. Before this, it's important to skill, upskill and reskill the content creators. Though Mumbai was traditionally a hub for the media and entertainment industry, it's difficult for people from remote locations to research the high cost of living in the city. The policy should focus on reaching out to nano creators rather than existing mega influencers. The existing copyright protection of the Copyright Act of 1957 should be relooked, which grants creators exclusive rights over their original works, including literary, dramatic, musical, and artistic creations. Notably, copyright protection is automatic upon the creation and fixation of a work in a tangible form, eliminating the need for formal registration.

However, the rise of digital platforms and artificial intelligence (AI) has introduced complexities in content ownership. For instance, the legal landscape concerning AI-generated content remains ambiguous, as traditional copyright laws are inherently tied to human authorship. This has led to debates on whether AI-generated works qualify for copyright protection and who holds the rights in such scenarios.

Policymakers need to revisit and potentially amend existing copyright laws to protect creators' rights and foster innovation. Clarifying the legal status of AI-generated content and establishing guidelines for content ownership in the digital age are crucial steps. Prioritising nano influencers, with smaller yet highly engaged audiences, will enhance grassroots digital presence, create more employment opportunities, and ensure fair distribution of economic benefits. A strict procedure for empanelment of influencers should include transparent vetting, mandatory adherence to ethical content guidelines, and societal impact assessment. Emphasising individual responsibility in content creation and introducing a mandatory course/skilling on Bharat’s heritage and cultural literacy for registered influencers will also contribute to a deeper understanding of rich traditions and narratives.

Integrating with Grassroots Development

Beyond funding and policy reforms, integrating the creator economy with grassroots development is essential for sustainable economic growth. One avenue for achieving this is through the active involvement of local governance bodies, such as gram panchayats, in promoting and circulating digital content.

Gram panchayats, as the foundational units of rural administration, can play a pivotal role in empowering local creators. By organising workshops, providing infrastructure, and facilitating access to digital tools, these bodies can nurture local talent and ensure that the benefits of the creator economy permeate rural areas. Similarly, women SHG groups can be skilled in digital content creation.

Moreover, collaborations between content creators and gram panchayats can lead to the production of region-specific content that resonates with local communities. Such initiatives not only preserve and promote local cultures but also create economic opportunities within villages, thereby reducing urban migration and contributing to the sustainability of rural economies.

All the content creators should have mandatory contribution from the profit to the gram panchayat for using the visuals of representing ambience, rituals, people, art, craft, songs or in any other form. This revenue will help the nano creators of the village to reutilise the fund for upgrading their facilities.

Need for Fact-Checking and Research Mechanisms

As digital content continues to shape public perception and cultural narratives, the importance of factual accuracy cannot be overstated. Content created in the digital age often promotes the identity of individuals, villages, and even nations. However, the rapid proliferation of misinformation and disinformation poses a significant challenge, underscoring the need for robust fact-checking mechanisms.

To ensure content credibility, measures such as access to verified data, fact-checking platforms, educational initiatives, AI-powered verification tools, and content review boards are necessary. Access to government databases, academic institutions, and credible research organisations is essential for content creators to source accurate information. Training programmes should include modules on research methodologies, ethical content creation, and responsible digital media use. AI-powered verification tools can help detect misinformation and cross-check sources, while content review boards at the gram panchayat level can validate local content. These measures can strengthen the credibility of digital content and enhance global standing in media and entertainment.

Thus, several challenges need to be addressed to fully realise the potential of the creator economy. These include effective implementation, skill development, updating copyright laws, providing reliable internet connectivity and digital infrastructure in rural areas, and establishing fair monetisation models.

The writer is an expert on creator economy. Views expressed are personal