Startups seek to cash in on the lucrative content creation economy
Did you know that data usage in India is among the highest in the world, with average monthly data traffic per user growing at a CAGR of 31% over the past five years to reach 17 gigabytes (GB) per user in December 2021?
According to Nokia’s India Mobile Broadband Index 2022, 4G data traffic has increased 6.5 times while the number of mobile broadband subscribers has increased 2.2 times over the past five years.
Therefore, it is no surprise that content creation has become an industry unto itself with social media platforms like YouTube, Instagram, Meta (formerly Facebook), SnapChat and TikTok, among others, reaching millions of individuals. who are creating content and, based on their huge following, even monetizing their content through partnerships and advertisements.
But, while content creation has proven to be quite lucrative for many, content creation comes at a cost and more often than not, these creators need quick access to funds for rapid deployment of content every day. .
A group of new era start-ups have realized that there is a huge opportunity in the content creation space in terms of funding those creators who don’t have access to traditional funding sources like banks, because their business model will not pass with such lenders.
Creators need access to instant funding, and some start-ups not only offer them instant funding, but bundle it with services related to tax, networking, and new monetization methods.
“The potential of creators has been largely untapped and at Cosmofeed, we are closing the gap by creating tools for creators to monetize their communities,” says Vivek Yadav, co-founder of Cosmofeed, who says it’s about an “all-in-one”. platform for creators”.
Simply put, Gurugram-based Cosmofeed allows creators to create free or paid channels, host workshops or events, and even launch and sell courses while allowing them to monetize their content, although creators can withdraw their income instantly.
Meanwhile, the startup charges users a 10% platform fee when they transact.
Considering the huge market potential, it goes without saying that Cosmofeed is not the only platform to offer such services to the vast creator community.
Startups like MoneyyApp, Qoohoo, and Rigi, among others, are among the platforms in this segment.
MoneyyApp, which states on its website that it makes “money management easier for creators,” offers compliance management and tax filing services in addition to streamlining the erratic payment system in the economy. creators with easy invoice generation.
“Our predictive engine, which takes data from YouTubers in the form of their channel catalog, social media revenue and KYC, helps us identify a creator’s ‘market cap’,” says Fayyaz Hussain, co- founder of MoneyyApp.
The Bengaluru-based platform also helps creators with growth capital for business purposes and the interest rate on the loan is similar to any normal business loan.
“Our sweet spot is the creator who is on the verge of becoming big and has started making money in the past 6-18 months and is disciplined enough to get a loan with the help of our score. credit to the creator,” he adds.
This gains importance because content creation is indeed a tedious task and involves hours of preparation and financial investment. Additionally, payments are often staggered or delayed, with creators often having their loan applications rejected by banks that rely on traditional credit scoring systems.
Moreover, according to recent studies, there is enormous growth potential for creators as well as for these start-ups, because the segment should explode in the near future.
A recent report by venture capital firm Kalaari Capital points out that there are 448 million active social media users in India and, more importantly, there are 80 million creators – content creators (on social media social and OTT), video streamers, influencers and bloggers.
He further stated that there are nearly 1.5 lakh professional content creators in India earning more than $200 per month while few earning stars earn more than $100,000 per month. The venture capital major pegged the size of the global creator economy market at $104.2 billion.
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