The creator economy, characterised by individuals monetising their creative talents and content through digital platforms, has gained significant momentum worldwide. However, Indian creator based startups are facing challenges that hinder their growth and result in failing of these organisations.
The Economic Times recently released a list of creator-based start-ups that have shut down or are on the verge of it. Even when the creator economy is blooming with many creators emerging at the forefront, creator-based organisations are facing a death blow. Let us understand why these Indian start-ups are unable to perform in this thriving economy.
Limited Infrastructure and Connectivity
One of the primary obstacles faced by Indian startups is inadequate infrastructure and limited internet connectivity in certain regions. Despite commendable progress in internet penetration, there are still areas where high-speed internet access remains a challenge. This restricts the ability of ventures, largely educational and or administrative, that cannot seep into many demographies to engage effectively, limiting the potential audience and revenue opportunities for Indian startups.
To address this issue, concerted efforts must be made to enhance internet infrastructure and connectivity across the country. Increased investment in digital infrastructure, such as expanding broadband access and improving mobile networks, will enable creators to reach wider audiences and stimulate the growth of Indian startups in the creator economy. Making these a necessity rather than a luxury can be a huge step in this direction.
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Monetisation Models
Creating sustainable revenue streams is vital for the success of startups in the creator economy. However, Indian startups often struggle to implement effective monetisation models. Advertising revenue, subscriptions, brand partnerships, and merchandise sales are common avenues for monetisation. Nevertheless, striking the right balance between user engagement, advertising strategies, and monetisation options requires careful consideration.
To overcome this challenge, Indian startups should focus on diversifying monetisation channels and exploring innovative approaches. They can collaborate with brands to create engaging branded content, develop subscription-based models that offer exclusive benefits to subscribers, and provide additional revenue streams such as fan contributions and merchandise sales. By offering a range of monetisation options, startups can empower creators and create a sustainable ecosystem.
Limited Awareness and Adoption
In some cases, creator-based startups may struggle because the concept or the value they offer is not well understood or adopted by the target audience. If potential users or customers are not aware of the benefits or have limited exposure to such tools, it can be challenging to generate interest and traction. Many creators are still exploring the potential of the creator economy and may be unaware of the opportunities it presents.
To address this issue, it is crucial to raise awareness about the benefits and the convenience these services bring. Free workshops and networking events can be organised to showcase success stories, highlight potential earnings, and provide guidance on getting started as a creator. Collaborations with educational institutions and industry influencers can also play a significant role in promoting the creator economy and encouraging more individuals to participate.
Cultural Factors
Indian society traditionally emphasises conventional career paths, such as engineering, medicine, and civil services. Pursuing creative fields, including content creation, may not be widely accepted or encouraged. This cultural bias can discourage individuals from fully exploring opportunities in the creator economy and more so investing in creator-based start-ups and limiting the growth of startups operating in this space.
Lack of Adequate Support Infrastructure
A robust support infrastructure is vital for the growth of the creator economy. In India, the ecosystem for content creators, including talent agencies, production studios, and educational programs, is still in its early stages. The absence of such support infrastructure limits creators’ access to tools, resources, and mentorship, hindering their ability to enhance their skills and reach a wider audience. The limited availability also makes it expensive and exclusive.
Language diversity
India has a diverse linguistic landscape, with numerous regional languages. Language barriers can make it challenging for creator-based startups to cater to a broader audience. Localising products and services, providing multilingual support, and understanding regional preferences are critical for success.
Funding and resource constraints
Many startups, regardless of their focus, face challenges in securing adequate funding and resources. This issue is prevalent in the early stages of a startup, where access to capital, mentorship, and support networks may be limited. Without sufficient resources, it becomes difficult for creator-based startups to develop and scale their offerings.
Limited ecosystem and mentorship
The startup ecosystem in India has evolved significantly in recent years, but it may still lack certain elements, such as strong mentorship networks and experienced entrepreneurs who can guide and support creator-based startups. Access to mentors, advisors, and industry experts can greatly impact the success of these ventures.
While Indian startups in the creator economy face several challenges, concerted efforts can pave the way for their growth and success. By addressing these challenges, Indian startups can unlock the immense potential of the creator economy, enabling creators to flourish and contribute to the digital landscape of the country. The creator economy is still in its trial and error phase, and the scope for improvement is infinite. Thereby, tapping into the potential of the economy is the only way forward.
