The business models of online creators are undergoing significant stress and transformation, highlighted this week by major YouTuber MrBeast's acquisition of fintech startup Step and a legal clash between Hollywood studios and ByteDance over its new AI video model. These developments signal a pivotal moment where established creators seek new revenue streams while the industry braces for an influx of AI-generated content.
On the latest episode of TechCrunch's Equity podcast, hosts Anthony Ha, Kirsten Korosec, and Rebecca Bellan debated the future viability of the creator economy. The central question raised was whether there will be room for new creators to succeed as the market becomes increasingly saturated and the technological landscape shifts.
Diversification Beyond Ads
Analysis by TechCrunch shows that top creators are moving beyond reliance on platform ad revenue. MrBeast, whose real name is Jimmy Donaldson, has expanded into consumer products, including a profitable chocolate line that generated hundreds of millions of dollars in 2024. This contrasted with his core media business, which reportedly lost money that same year.
"If Mr. Beast can’t be profitable with his media company, who can?" remarked podcast host Kirsten Korosec, calling the statistic "stunning." This trend mirrors traditional celebrity brand extensions, with venture capital firms like Slow Ventures now raising funds specifically to back creators launching product-based businesses.
The AI Video Onslaught
Simultaneously, the launch of ByteDance's Seedance 2.0 video generation model sparked immediate controversy. The tool, initially available to Chinese users, enabled the creation of viral AI videos like one depicting Brad Pitt fighting Tom Cruise. This prompted cease-and-desist letters from major studios including Netflix, accusing ByteDance of allowing users to generate content using copyrighted intellectual property and actor likenesses without guardrails.
ByteDance later apologised, stating it launched the model "without any real guardrails" and promised improvements. The incident underscores the legal and creative tensions emerging as AI tools become more accessible.
Flood of Content or Democratic Tool?
The proliferation of such tools presents a dual-edged sword for the media landscape. Rebecca Bellan noted the potential for a "flood" of low-effort content, or "slop," but also highlighted the democratising potential for small businesses or individuals without large budgets to create promotional material or tell stories.
Anthony Ha suggested the market response may involve a renewed "valuing of authenticity," where established human creators could differentiate themselves from AI simulacra. He cited OpenAI's Sora, which reportedly saw initial user growth spike then struggle to retain engagement, as indicative of an "emptiness" in purely AI-generated experiences.
An Uncertain Future for New Creators
The consensus among the analysts points to a more challenging environment ahead. For established creators, monetisation will become more difficult. For newcomers, breaking through an ever-growing sea of content—both human and AI-generated—will be "super difficult," according to Ha.
The evolution suggests the pool of widely successful creators may shrink unless new technological mediums or business paradigms emerge to support a broader ecosystem.