This week, the business models of online creators came into focus following two major developments. First, the mega-popular YouTuber MrBeast announced his company is buying the fintech startup Step. Shortly after, Hollywood studios sent a flurry of cease-and-desist letters to ByteDance over the launch of its new video generation model, Seedance 2.0.
These seemingly unconnected events point to a media landscape undergoing transformative change. Popular creators are actively diversifying their revenue streams, while the threat and promise of increasingly powerful generative AI tools loom on the horizon.
On the latest episode of TechCrunch’s Equity podcast, we debated what’s next for the creator economy and whether there will be any room for the next generation of creators to stand out. One question raised was about the next saturation point. Not every creator can spin off products, so will the pool of successful creators simply get smaller, or will new technology or mediums emerge to help them find a paying audience?
The news led to an analysis of the creator business model, highlighting that many are no longer relying solely on ad revenue. The most popular YouTubers are expanding, often into e-commerce and other streams. For example, MrBeast has a line of food products, including chocolate, that made hundreds of millions of dollars and was profitable in 2024, while his media business lost money. This raised a pointed question: if MrBeast can’t be profitable with his media company, who can?
The ad revenue model is not working out for many creators as the market reaches saturation. The conversation then turned to what comes next. Could creators make digital twins of themselves? Or is this evolution simply following the traditional celebrity path of endorsing products?
Venture capital is also getting involved, with funds like Slow Ventures backing creators to build businesses around their niche followings. This mirrors a broader trend, even among journalists, of building a personal brand to diversify revenue.
The discussion then turned to AI, specifically ByteDance’s launch of Seedance 2.0. The model initially had few guardrails, leading to viral AI-generated videos like one of Brad Pitt fighting Tom Cruise. This prompted Hollywood studios to send cease-and-desist letters, arguing the tool allowed users to generate videos using their intellectual property and movie stars. ByteDance later apologized and promised to add better safeguards.
This development ties directly to creators. These AI tools will flood the world with new content, creating a tension. On one hand, they could produce a lot of low-effort material. On the other, they could democratize access, allowing people without big budgets or teams to tell their stories or create ads for small businesses.
The response to this influx of AI-generated content may be a renewed valuing of authenticity. The opportunity for big creators might lie in being the real, human person behind the brand, not a digital simulacrum. It’s telling that OpenAI’s Sora app, after a stellar launch, has struggled to hold users, perhaps due to a certain emptiness in the experience when a real human isn’t on the other side.
Ultimately, these tools will make the landscape more challenging. Established creators will find it harder to monetize, and new creators will have an especially difficult time breaking out because there will be so much more content competing for attention.