Subscription apps are becoming increasingly popular among social media creators as the content economy becomes more competitive and volatile.

• In September 2021, the creator economy reached its peak, as per a recent study by the Bank of America Institute.
• An increasing number of content creators are turning to monthly subscription platforms such as Substack and Patreon for a consistent source of income.
• Even though the global influencer market reached $21 billion in 2023, a separate study by NeoReach found that only 48% of creators earn $15,000 or less annually.

To secure a steady income in a competitive and fluctuating market, social media creators are shifting towards monthly subscription services that allow them to monetize their followers directly.

In September 2021, the creator economy reached its peak, according to research from the Bank of America Institute. Despite an increase in average monthly income for content creators over the past three years, a full-time U.S. employee earns five times as much on average each month.

According to research conducted by the Bank of America Institute, it is uncommon to make a full-time living as a content creator, let alone become wealthy.

The slowdown in paid partnerships, increased competition among creators, decline in online viewership due to the pandemic, and concentration of paid partnerships among top creators are the reasons attributed by analysts at the Bank of America Institute for the decline in the number of paid partnerships among creators.

To turn internet content creation into a full-time career, content creators need to meet financial requirements, such as paying monthly bills. As a result, they are seeking ways to diversify their revenue streams, including monthly subscription platforms like Substack and Patreon.

Both Substack and Patreon have become popular among creators due to their ability to allow followers to pay directly for content. Creators can offer various subscription tiers with different benefits, and both platforms have seen significant success. Patreon has paid out over $8 billion to creators since its launch in 2013, while Substack boasts over 4 million paid subscribers.

The volatility of income on TikTok and Instagram is due to the algorithmic models that control content visibility, causing earnings to fluctuate dramatically.

"As a creator with over 4 million followers, Molly Burke acknowledged that she cannot solely depend on her social media presence to pay her bills. As an entrepreneur and business owner, she must find a sustainable way to maintain her career in the long run."

Algorithms are increasingly used by social media platforms to determine what content users are shown, based on their past behavior and preferences. These algorithms analyze user activity to create personalized feeds that prioritize posts that are likely to generate engagement, such as likes or shares.

Creators feel pressured to produce content that appeals to algorithms, even if it compromises the quality of their work, according to many.

""Sometimes my TikToks are popular and I receive a lot of views, but then the algorithm fluctuates," Burke stated."

A study by NeoReach found that more than two-thirds of content creators rely on brand partnerships as their primary revenue source, while nearly half work full time. Despite the global influencer market reaching $21 billion in 2023, over 48% of creators earn $15,000 or less annually. Goldman Sachs reported in April 2023 that there are more than 50 million content creators worldwide.

For five years, Burke, a renowned YouTuber who creates videos about living with blindness and managing daily life, has been generating content online. Although it's not her primary source of income, she utilizes her Patreon earnings to cover crucial expenses, such as rent.

She expressed her gratitude and luck that her revenue stream is a reliable source of income, ensuring she can cover her rent this month.

Platforms such as Patreon enable creators to bypass algorithms and connect directly with their most devoted fans, who are willing to pay for exclusive content.

""Creators can generate massive revenue through Patreon memberships, which provide a stable source of income on a large scale," Jack Conte, founder and CEO of Patreon, stated in an interview with CNBC."

The Try Guys, a popular comedy group known for their challenge-based videos, have 8 million subscribers and 2.7 billion views on YouTube. However, in May, they announced the launch of their own streaming service called 2nd Try. Since then, the group has moved most of its new videos behind a $5-a-month paywall, allowing subscribers to watch the new content without ads.

Since the launch of 2nd Try three months ago, the company stated that it is on track to achieve profitability.

Keith Habersberger of Try Guys said to CNBC, "We needed to create something with more consistency."

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