Creator Economy Market Nears $500 Billion by 2032, Licensing Component Seen as Underestimated by Investors

The global creator economy, valued at approximately $250 billion in 2023, is projected to surge to nearly $499.7 billion by 2032, yet one prominent figure suggests investors are missing a crucial piece of its true valuation. Lachlan Phillips, founder of Creator.co and associated with "exo/acc," recently voiced a strong opinion regarding the market's comprehensive understanding. "If investors could possibly comprehend the total market cap for the creator licencing market we wouldn't be having this debate at all," Phillips stated on social media.

Phillips' remarks underscore a perceived undervaluation of intellectual property (IP) licensing within the broader creator ecosystem. The creator economy encompasses diverse monetization models, including brand partnerships, advertising, subscriptions, and the licensing of content such as music, videos, images, and digital art. While licensing represents a growing and valuable revenue stream for creators, its contribution is often embedded within overall market valuations rather than being tracked as a distinct market segment.

Lachlan Phillips, a recognized entrepreneur in the creator economy space, founded Creator.co with the aim of empowering creators and optimizing their monetization strategies. His affiliation with "exo/acc" suggests a focus on exponential technologies and their impact on economic and societal shifts. Phillips has consistently advocated for the immense potential of the creator economy, previously stating it is a "trillion dollar market."

Industry analysts acknowledge that accurately quantifying the specific market cap for creator IP licensing presents a challenge due to its integration into broader content and entertainment markets. This complexity can lead to varying investor perceptions regarding its true economic weight. Investors often target platforms and infrastructure providers that facilitate content creation and monetization, viewing IP licensing as a significant, albeit sometimes undervalued, component of a creator's long-term asset base.

The ongoing "debate" Phillips references highlights a potential blind spot for investors who may not fully grasp the cumulative value generated through creators' IP. As the creator economy continues its rapid expansion, understanding and accurately valuing all its components, especially licensing, will be crucial for a comprehensive assessment of its economic impact and future growth trajectory. This perspective suggests a significant upside for those who can accurately assess this burgeoning segment.