creator economy
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Everything is switching from offline to online mode, spurred by the pandemic, and that also has turned around things for the creative economy. Creative professionals continue to look for ways to monetize their talents and knowledge through online education platforms like CLASS101 that bring stable incomes and improve opportunities.
CLASS101, a Seoul-based online education platform, announced today it has closed $25.8 million (30 billion won) Series B funding to accelerate its growth in South Korea, the U.S. and Japan.
The Series B round was led by Goodwater Capital, with additional participation from previous backers Strong Ventures, KT Investment, Mirae Asset Capital and Klim Ventures.
In 2019, the company raised a $10.3 million (12 billion won) Series A round led by SoftBank Ventures Asia along with Mirae Asset Venture Investment, KT Investment, Strong Ventures and SpringCamp.
Co-founder and CEO of CLASS101 Monde Ko told TechCrunch that the company will use the proceeds to focus on hiring more talent, as well as expanding domestic business and overseas markets in the U.S. and Japan.
Ko and four other co-founders established CLASS101 in 2018, which was pivoted from a tutoring service platform that was founded in 2015, Ko said. It has 350 employees now.
“We will keep supporting creators to monetize their talents and we will also allow creators to expand their revenue streams by selling their goods, digital files and more products via our platform,” Ko said.
When asked about what differentiated it from other peers, CLASS101 provides and ships all the necessary tools and material “Class Kit”, Ko said.
The company offers more than 2,000 classes within a raft of categories, with drawing, crafts, photography, cooking, music and more. It also provides about 230 classes in the U.S. and 220 classes in Japan. There are approximately 100,000 registered creators and 3 million registered users as of August 2021.
CLASS101 launched its platform in the U.S. in 2019 and entered Japan last year. The company opened online classes for kids aged under 14 in 2020.
“CLASS101 is a company that combines the advantages of Patreon and YouTube, offering tailored support for creators while fulfilling users’ learning needs,” co-founder and managing partner at Goodwater Capital Eric Kim said, adding that it is the fastest growing company “in an economic phenomenon in which individuals follow their passions and do what they really enjoy while also making a living from it.”
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Instagram is building its own version of Twitter’s Super Follow with a feature that would allow online creators to publish “exclusive” content to their Instagram Stories that’s only available to their fans — access that would likely come with a subscription payment of some kind.
Instagram confirmed that the screenshots of the feature recently circulated across social media are from an internal prototype that’s now in development, but not yet being publicly tested. The company declined to share any specific details about its plans, saying they’re not at a place to talk about this project just yet.
Image Credits: Exclusive Story in development via Alessandro Paluzzi
The screenshots, however, convey a lot about Instagram’s thinking, as they show a way that creators could publish what are being called “Exclusive Stories” to their accounts, which are designated with a different color (currently purple). When other Instagram users come across the Exclusive Stories, they’ll be shown a message that says that “only members” can view this content. The Stories cannot be screenshot, either, it appears, and they can be shared as Highlights. A new prompt encourages creators to “save this to a Highlight for your Fans,” explaining that, by doing so, “fans always have something to see when they join.”
The Exclusive Stories feature was uncovered by reverse engineer Alessandro Paluzzi, who often finds unreleased features in the code of mobile apps. Over the past week, he’s published a series screenshots to an ongoing Twitter thread about his findings.
Image Credits: Instagram Exclusive Story Highlight feature in development via Alessandro Paluzzi (opens in a new window)
Exclusive Stories are only one part of Instagram’s broader plans for expanded creator monetization tools.
The company has been slowly revealing more details about its efforts in this space, with Instagram Head Adam Mosseri first telling The Information in May that the company was “exploring” subscriptions along with other new features, like NFTs.
Paluzzi also recently found references to the NFT feature, Collectibles, which shows how digital collectibles could appear on a creator’s Instagram profile in a new tab.
Image Credits: Instagram NFT feature in development via Alessandro Paluzzi (opens in a new window)
Image Credits: Alessandro Paluzzi (opens in a new window)
Instagram, so far, hasn’t made a public announcement about these specific product developments, instead choosing to speak at a high level about its plans around things like subscriptions and tips.
For example, during Instagram’s Creator Week in early June — an event that could have served as an ideal place to offer a first glimpse at some of these ideas — Mosseri talked more generally about the sort of creator tools Instagram was interested in building, without saying which were actually in active development.
“We need to create if we want to be the best platform for creators long term, a whole suite of things, or tools, that creators can use to help do what they do,” he said, explaining that Instagram was also working on more creative tools and safety features, as well as tools that could help creators make a living.
“I think it’s super important that we create a whole suite of different tools, because what you might use and what would be relevant for you as a creator might be very different than an athlete or a writer,” he said.
“And so, largely, [the creator monetization tools] fall into three categories. One is commerce — so either we can do more to help with branded content; we can do more with affiliate marketing…we can do more with merch,” he explained. “The second is ways for users to actually pay creators directly — so whether it is gated content or subscriptions or tips, like badges, or other user payment-type products. I think there’s a lot to do there. I love those because those give creators a direct relationship with their fans — which I think is probably more sustainable and more predictable over the long run,” Mosseri said.
The third area is focused on revenue share, as with IGTV long-form video and short-form video, like Reels, he added.
Image Credits: Instagram Exclusive Story feature in development via Alessandro Paluzzi (opens in a new window)
Instagram isn’t the only large social platform moving forward with creator monetization efforts.
The membership model, popularized by platforms like OnlyFans and Patreon, has been more recently making its way to a number of mainstream social networks as the creator economy has become better established.
Twitter, for example, first announced its own take on creator subscriptions, with the unveiling of its plans for the Super Follow feature during an Analyst Day event in February. Last week, it began rolling out applications for Super Follows and Ticketed Spaces — the latter, a competitor to Clubhouse’s audio social networking rooms.
Meanwhile, Facebook just yesterday launched its Substack newsletter competitor, Bulletin, which offers a way for creators to sell premium subscriptions and access member-only groups and live audio rooms. Even Spotify has launched an audio chat room and Clubhouse rival, Greenroom, which it also plans to eventually monetize.
Though the new screenshots offer a deeper look into Instagram’s product plans on this front, we should caution that an in-development feature is not necessarily representative of what a feature will look like at launch or how it will ultimately behave. It’s also not a definitive promise of a public launch — though, in this case, it would be hard to see Instagram scrapping its plans for exclusive, member-only content given its broader interest in serving creators, where such a feature is essentially part of a baseline offering.
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In April, Facebook announced a slew of new audio products, including its Clubhouse clone, called Live Audio Rooms, which will be available across both Facebook and Messenger. Since May, Facebook has been publicly testing the audio rooms feature in Taiwan with public figures, but today the company hosted its first public test of Live Audio Rooms in the U.S. The event itself was hosted by Facebook CEO Mark Zuckerberg, who chatted with fellow execs and creators.
Joining Zuckerberg were Facebook VP and Head of Facebook Reality Labs Andrew “Boz” Bosworth, Head of Facebook App Fidji Simo and three Facebook Gaming creators, including StoneMountain64, QueenEliminator and TheFierceDivaQueen.
Image Credits: Facebook screenshot
The creators used their time in the Audio Room to talk more about their gaming journeys on Facebook, what kind of games they were streaming and other gaming-related matters. Zuckerberg also briefly teased new gaming features, including a new type of post, coming soon, called “Looking for Players.” This post type will help creators find others in the community to play games with while they’re streaming.
In addition, badges that are earned from livestreams will now carry over to fan groups, Zuckerberg said, adding that it was a highly requested feature by creators and fans alike.
Fan groups will also now become available to all partnered creators on Facebook Gaming, starting today, and will roll out to others in the coming weeks.
Image Credits: Facebook screenshot
The experience of using the Live Audio Room is very much like what you’d expect on another platform, like Clubhouse or Twitter Spaces. The event’s hosts appear in rounded profile icons at the top of the screen, while the listeners appear in the bottom half of the screen, as smaller icons. In between is a section that includes people followed by the speakers.
The active speaker is indicated with a glowing ring in shades of Facebook blue, purple and pink. If verified, a blue check appears next to their name.
Listeners can “Like” or otherwise react to the content as it streams live using the “Thumbs Up” button at the bottom of the screen. And they can choose to share the Audio Room either in a Facebook post, in a Group, with a friend directly or through other apps.
Image Credits: Facebook screenshot
A toggle switch under the room’s three-dot “more” menu lets you turn on or off auto-generated captions, for accessibility. From here, you can also report users or any issues or bugs you encountered.
The Live Audio Room today did not offer any option for raising your hand or joining the speakers on stage — it was more of a “few-to-many” broadcast experience.
Before today, TechCrunch received a couple of tips from users who reported seeing the Audio Rooms option appear for them in the Facebook app. However, the company told us it had only tested Live Audio Rooms in the U.S. with employees.
During the test period, Live Audio Rooms are only available on iOS and Android, we’re told.
Zuckerberg also used today’s event to talk more broadly about Facebook’s plans for the creator economy going forward.
“I think a good vision for the future is one where a lot more people get to do creative work and work that they enjoy, and fewer people have to do work that they just find a chore. And, in order to do that, a lot of what we need to do is basically build out a bunch of these different monetization tools,” explained Zuckerberg. “Not all creators are going to have the same business model. So having the ability to basically use a lot of different tools like Fiji [Simo] was talking about — for some people it might be, Stars or ad revenue share or subscriptions or selling things or different kinds of things like that — that will be important and part of making this all add up.”
He noted also that the tools Facebook is building go beyond gaming, saying that Facebook intends to support journalists, writers and others — likely a reference to the company’s upcoming Substack clone, Bulletin, expected to launch later this month.
Zuckerberg additionally spoke about how the company won’t immediately take a cut of the revenue generated from creators’ content.
“Having this period where we’re not taking a cut and more people can get into these kinds of roles, I think is going to be a good thing to do — especially given how hard hit a lot of parts of the economy have been with COVID and the pandemic,” he said.
More realistically, of course, Facebook’s decision to not take an immediate cut of some creator revenue is a decision it’s making in order to help attract more creators to its service, in the face of so much competition across the industry.
Clubhouse, for example, is currently wooing creators with a payments feature, where creators keep 100% of their revenue. And it’s funding some creators’ shows. Twitter, meanwhile, is tying its audio product Spaces to its broader set of creator tools, which now include newsletters, tips and, soon, a subscription platform dubbed Super Follow.
Zuckerberg didn’t say during today’s event when Live Audio Rooms would be available to the public, but said the experience would roll out to “a lot more people soon.”
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