Economic Contributions of the Creative Sector

At YouTube, one of the best parts of my job is meeting so many creators who are building businesses, creating jobs and sharing their talents with the world. It’s incredible to see their impact reflected in our latest U.S. Impact Report, backed by research from Oxford Economics. Here are some highlights: - YouTube’s creative ecosystem contributed $55 billion to the U.S. GDP in 2024, crossing $50 billion for the first time. That’s a powerful testament to the businesses built on our platform. - Our ecosystem also supported 490,000 Full-Time Equivalent jobs. Our creators are not only making content, but they’re also generating income and reinvesting it in their teams and operations. - 75% of earning creators in the U.S. agree that YouTube offers opportunities they wouldn't find in traditional media. When we launched the YouTube Partner Program in 2007, we made a commitment to empowering creators. Between 2021 and 2023 alone, we paid out over $70 billion to creators, artists and media companies. And we’re always looking for new ways to help them monetize and grow their ventures. YouTube is a platform where passions become companies and any voice can find a stage, from second-generation family businesses like Perkins Builder Brothers to educators like Javoris Hollingsworth, PhD, MBA and Arlene Gordon-Hollingsworth, PhD of Gracie's Corner. The creator economy is just getting started. Read the full report below 👇

A lot of times when we see a new AI breakthrough, we instinctively jump straight to thinking about what job functions might be impacted. It’s useful to think through the new risk that any new AI poses, but we often underestimate the positive impact it will have on various functions and parts of the economy, and overestimate the negative. The new imagegen in chatgpt represents a perfect example of this phenomenon. This new AI model clearly can produce vastly better designs than basically any model (and even a large number of humans) out there - and this will clearly have an impact on design, architecture, animation, marketing creative, interior design, and many more fields. And while there will be viral images for weeks and weeks about cool things we as consumers do with these models, those things rarely will replace what most designers are actually hired to do and are usually only the tip of the iceberg. In reality, what likely will happen, is these tools will simultaneously (1) inspire more people to renovate that room, launch the new website, build that new product, or create that campaign — which will lead to more economic activity in those related functions; and (2) be used as a tool in the background by the “professional” designer to build that design faster, test more ideas, or serve more clients cheaper and faster. This idea came up today in conversation on @tbpn as sort of a “Jevons paradox of design”. Which hits on an important idea that in fact, when we make a particular category of service cheaper and more efficient, we actually see the utilization of that service go up more than enough ton make up for the efficiency gain. This idea is well proven in areas like Uber growing the taxi market, cloud computing growing server utilization, or even AI model efficiencies growing AI compute utilization. But it will also get proven out in many areas of knowledge work. You can extrapolate this to many other parts of the economy. The simplest heuristic is to think about which parts of the economy -if an underlying service got cheaper or far better than it is today- would we utilize far more of? In design, I’d argue that most marketing in the world just isn’t that good. So we can clearly use more design. In the coming years, the same question will be asked about building software — at least for any “growth” company, you’ve had the experience of having a product roadmap that’s far longer than your ability to hire or afford engineers. But this extends to plenty of other areas in an organization. If most companies could “magically” get more productivity out of your sales team in the form of AI Agents supporting them, they’d likely serve more customers effectively, causing companies to hire more reps. Yes, there will be many categories that shift more meaningfully than the examples above. But for every area of efficiency gain there is often a commensurate boom in economic activity surrounding it.

The NIVA - National Independent Venue Association just released its first-ever State of Live report, which looks at the economic impact, community value, and current challenges facing independent venues, promoters, and festivals across the United States. Here are some of the top insights from the report: 1️⃣ Independent Venues Are Economic Powerhouses—Yet Financially Fragile: Independent live venues, promoters, and festivals contributed an impressive $86.2 billion to U.S. GDP in 2024, supporting 908,000 jobs and generating $153.1 billion in total economic output. Despite this impact, 64% of these venues operated at a loss last year, undercut by inflation, monopolistic industry pressures, and predatory ticket resale practices. 2️⃣ Independent Stages Create Jobs and Community Value Across the Nation: The sector directly employs over 316,000 people and sustains a total workforce surpassing 907,000 when accounting for contractors and businesses in the ecosystem. Independent venues offer opportunities in creative, technical, and service roles—fueling economic mobility and supporting livelihoods in communities of all sizes, from major cities to rural towns. In 2024, these jobs generated $51.7 billion in wages and benefits, supporting families and strengthening local economies 3️⃣ Live Events Drive Local Economies and Tourism: Fans attending independent shows generated $10.62 billion in off-site spending in 2024, filling hotels, restaurants, shops, and supporting local transit. This spillover represents 9.2% of total U.S. travel and tourism revenue, demonstrating that the value of independent venues extends far beyond ticket sales and into the heart of community commerce. 4️⃣ Rising Costs and Industry Challenges Undermine Stability: Operating costs are accelerating: 60% of venues expect artist fees to rise in 2025, and most anticipate higher expenses for staffing, insurance, and rent. At the same time, venues face significant threats from ticket resale platforms, forced ticket transferability, and restrictive industry practices—challenges that erode revenues and threaten the sector’s long-term sustainability. Check out the full report below ⤵️

Detroit and Milwaukee present a striking contrast in their approach to arts and culture funding, with profound implications for their creative economies. Detroit shows a more robust and coordinated approach to arts funding with multiple sustainable funding streams, while Milwaukee struggles with limited public support and increasing competition for resources. Detroit's strategic investment in arts and culture has become part of its revitalization strategy, while Milwaukee's arts community faces ongoing funding challenges despite having a rich cultural ecosystem. Detroit's arts and culture sector contributed an impressive $18.4 billion to Michigan's state GDP in 2022, employing 120,714 workers and generating over $10.4 billion in wages and benefits. The city's cultural vitality is further enhanced by strong attendance, with 45% of adults participating in live performances. This success is underpinned by substantial support from major foundations like Kresge, Knight, and Hudson-Webber, along with a $1 million state grant for new arts initiatives and a dedicated Office of Arts, Culture and Entrepreneurship. In contrast, Milwaukee's arts sector, while significant, operates on a smaller scale, generating $334.6 million in economic activity and supporting 4,550 jobs in the Greater Milwaukee area. The sector contributes $57.8 million in tax revenue, with $191.8 million spent directly by arts organizations and $142.8 million in event-related spending by audiences. However, the city faces severe funding challenges, ranking 49th out of 50 states in per capita state funding for arts at just 18 cents, and notably lacks a dedicated public funding office for arts and culture. While Milwaukee's total creative sector contributes $11.9 billion to Wisconsin's economy and supports over 89,000 jobs, the city's cultural organizations increasingly struggle with sustainable funding models. Meanwhile, Detroit continues to leverage major events like the 2024 NFL Draft, which generated $213.6 million in economic impact, demonstrating how strategic investment in arts and culture can drive broader economic revitalization. Detroit's revitalization strategy has positioned arts and culture as a cornerstone of its urban renewal, with the Office of Arts, Culture and Entrepreneurship (ACE) serving as the driving force behind the city's cultural renaissance. ACE has launched transformative initiatives that are reshaping Detroit's cultural landscape, most notably the innovative Arts Alleys program. This $3 million initiative, funded through American Rescue Plan Act funds and supplemented by Ford Foundation support, is transforming commercial and residential alleys across nine neighborhoods into vibrant community spaces for art exhibitions and cultural gatherings. Detroit's commitment to cultural development has earned international recognition, including becoming the first U.S. city to receive the UNESCO City of Design designation.

🌍 What if creativity was the key to economic growth? When people think about Nigeria’s economy, they often think of oil, gas, or fintech. But the country’s economic engine might actually be its creative industry—music, film, fashion, and digital media. Take this: In December 2024, Lagos’ Detty December music and cultural events generated an incredible $71.6 million in just one season. That’s a powerful reminder that creativity isn’t just about culture—it’s big business. Yet, the challenge remains: how do we turn this seasonal success into a year-round economic driver? 💡 The Opportunity ✅ The creative industry and tourism generates more jobs per dollar than manufacturing (as noted by World Bank President Ajay Banga). ✅ Nigeria aims to grow its creative economy to $100 billion in GDP by 2030—but this won’t happen without strategic investment and policy support. ✅ Artificial intelligence (AI) could help artists grow—or exploit them if policies don’t protect their rights. Later this month, Global Citizen’s Move Afrika is bringing John Legend to Lagos—not just for a concert, but as part of a broader effort to build Africa’s first international touring circuit. The goal? To help local artists earn more, build careers, and grow the music economy. Before the show, we’re co-hosting a Music Policy Assembly with the IFC - International Finance Corporation and the Center for Music Ecosystems to tackle big questions: 📌 How do we build infrastructure for the creative economy? 📌 How can governments and investors support long-term growth? 📌 How do we ensure Nigerian and African artists own their work and benefit from the global demand for their creativity? 🎶 Nigeria’s creative sector isn’t just a cultural moment—it’s an economic revolution in the making. The only question is: who will invest in its future? 📖 Read more in my latest article with Liz Agbor-Tabi Oton: https://lnkd.in/extAwN4U #Nigeria #CreativeEconomy #MoveAfrika #MusicIndustry #EconomicGrowth #PolicyMatters #InvestInCreativity

"Within a year of introducing image-generating AI tools, demand for graphic design and 3D modeling freelancers decreased by 17.01%." What This Means for Visual Content Freelancers: The creative job market isn’t dying; it’s shifting. Freelancers must now adapt to survive and thrive in the new AI-powered economy. Here are key trends to watch: 1. Commoditized Work Declines: Clients will increasingly use AI for basic and repetitive tasks like social media graphics, simple banners, or standard 3D objects. The days of earning consistent income from “entry-level design” are fading. 2. Value in Creativity, Not Execution: AI can generate content, but it cannot ideate, innovate, or strategize. Clients still need human creatives for storytelling, brand positioning, and high-level conceptual work. Designers who position themselves as creative partners—not just executors—will find opportunities. 3. Specialization Is Key: Generic design work is most vulnerable to AI. Specialized services, such as complex branding, immersive 3D design, or design that involves cultural nuance, are harder to automate and remain valuable. 4. Humans as AI Collaborators: The future of creative work lies in collaboration with AI, not competition against it. The most successful freelancers will embrace AI tools to enhance their workflows, offering faster delivery, personalized touches, and hybrid solutions that machines alone cannot achieve. source: https://lnkd.in/edPvM6jn #visualcontent #visualtech #genai #economy #creator

Samsung is winning more design awards than Apple, Sony, and LG combined. Here's what changed. Working in design for the last decade years, I've learned one thing: true design-led innovation is incomplete without design integration. Samsung's story proves this perfectly. In 1996, Samsung's chairman, Lee Kun-hee, faced a choice. He could hire famous designers for quick wins, or take the slow path of training their own people. He chose the long-term game of growing talent internally. What happened next that changed Samsung forever: 📍Lee Kun-hee created three distinct training programs at school, college and industry levels, including the 2-year in house program for Samsung designers. 📍He asked designers to work closely with engineers, like when they created a special hinge to hide phone antennas, making the first "no antenna" flip phone. 📍Samsung gave designers direct access to suppliers, which led to thinner TVs because they found a way to ship LCD panels that saved suppliers money. 📍They trusted designers to create new product types, they noticed many Asian professionals still used pocket diaries, so they made the Galaxy Note, creating an entirely new category of big phones. Samsung’s designers mastered more than aesthetics. They solved engineering problems, cut costs with suppliers, and shaped new products like the Galaxy Note. The first Galaxy Note (2011) sold 1 million units in 2 months and 10 million in under a year, proving design drives innovation and business success. The results after 20 years: → 30+ international design awards annually → Design patent filings increased by 200% → Market value grew 10x faster than competitors I believe this shows us something few companies understand- by prioritizing design, organizations not only drive innovation but also improve financial performance and maintain competitiveness. What's your take on design integration? #Design #Innovation #Growth #Leadership

You Don’t Have to Be an Entrepreneur to Succeed in the Creative Industry Not everyone is meant to run a business. And that's okay. Some people love writing scripts but have zero interest in pitching or producing. Some people thrive in lighting, makeup, or cinematography but don’t want the headache of running a studio. Some people just want to show up, do their job, and go home. And you know what? That’s okay. But here’s the reality: Things are different now. It’s no secret that the traditional Hollywood system is shrinking. Tens of thousands of studio executives, game developers, animators, and musicians are being laid off. Major studios are slashing budgets, canceling projects, and outsourcing work. If you’re waiting for the old industry to come back, well … anything’s possible, but … Where the New Opportunities Are: 💡 The Creator Economy There are independent filmmakers, influencers, and brands who have real budgets and need skilled professionals. YTJobs.com is filled with them. 💡 New-Tech Filmmakers Small, agile teams are using Unreal Engine, and virtual production, and they need skilled humans to bring these projects to life. 💡 Entrepreneurial Partnerships Some creatives love the startup grind but need a strong number two or three—someone great at execution, operations, or a specialized skill. 💡 Brands & Content Studios Companies now produce their own shows, commercials, and digital series. They need cinematographers, editors, sound designers, and more. The jobs are still there—they’re just in non-traditional places. You Don’t Have to Greenlight Yourself—But You Do Need to Adapt ✔️ If you don’t want to be an entrepreneur, team up with someone who is. ✔️ If you don’t want to create your own projects, find independent creators who need your skill set. ✔️ If you don’t want to run a studio, work with those who are building one. The old days of waiting for the studio system to take care of you are over. But that doesn’t mean there aren’t amazing opportunities waiting for you. Be open. Be adaptable. Find the people who need exactly what you bring to the table. The industry isn’t dying. It’s just shifting. And those who embrace the shift will thrive.

The Current Contraction in the Entertainment Industry: Causes, Impacts, and the Path Forward—Part 2 of 2 The contraction in the entertainment industry has had a direct impact on talent, both in front of and behind the camera. Major studios and streaming platforms have implemented layoffs, and freelancers—who make up a significant portion of the industry—are facing fewer job opportunities and greater uncertainty. For actors, writers, directors, and other creatives, this has led to a more competitive environment where securing work is increasingly difficult. The recent writers' and actors' strikes underscore the tensions within the industry, as workers demand fair compensation in an era where traditional revenue models are being upended. Despite the challenges, the entertainment industry has always been resilient, finding ways to adapt and thrive even in difficult times. The current contraction may serve as a catalyst for innovation, pushing the industry to explore new business models and content formats. For example, the rise of virtual production techniques, popularized by shows like The Mandalorian, offers a cost-effective alternative to traditional filmmaking. Similarly, the integration of artificial intelligence and data analytics is helping studios better understand and predict consumer preferences, allowing for more targeted content creation. Additionally, the industry is likely to see a continued focus on international markets, where demand for content is growing. By tailoring content to diverse global audiences, entertainment companies can tap into new revenue streams and reduce their reliance on saturated domestic markets. The current contraction in the entertainment industry is a complex phenomenon with far-reaching implications. While it presents significant challenges, it also offers opportunities for reinvention and growth. By embracing innovation, adapting to changing consumer habits, and exploring new markets, the industry can navigate this period of contraction and emerge stronger on the other side.