Will TikTok Get Banned? ??

Hi, Jacques Keyser here, VidCon Programming Director, and welcome back to the bi-weekly VidCon newsletter, where I filter through hundreds of news articles, headlines, and industry thought leaders to bring you the best of what the creator economy has to offer right now.?

This week we’ll be covering ‘Lunchly,’ a new collaboration from three of the internet's biggest creators. We’ll also dive into whether a TikTok ban in the US could really happen and why YouTube remains the reigning king of social platforms.

Plus, we’re joined by Head of Content Creators at Kickstart and Founder of Creator Economy NYC, Brett Dashevsky , who answered our rapid-fire questions.

Let’s jump right in!

Three Creator Mega-stars Come Together to Launch ‘Lunchly’

In August, I wrote about how creator product collaborations are a huge missed opportunity for growth of creator brands. Fast forward a month and, three of the internet's biggest stars announced that they combined their respective products to create a new "mega product," Lunchly, a "healthier" competitor to the kids' lunch brand Lunchables.

KSI and Logan Paul joined forces with MrBeast to merge their multi-million-dollar products, PRIME and Feastables, into a new co-created product. Lunchly features a choice of Fiesta Nachos, "The Pizza," or Turkey Stack 'Ems, served with a Prime hydration drink and a Feastables chocolate bar.This launch hasn’t been without controversy. While this product may be (with a real emphasis on may be) healthier than Lunchables, labeling it as "better for you" is kind of like saying Diet Coke is better for you than regular Coke. Neither is particularly good for you, period! And with recent lawsuits alleging that Prime falsely advertised and marketed their product as "healthy" to kids, citing high caffeine content and PFAS chemicals in their products, marketing this new product with the angle of "healthier" may not have been the strongest move.

The timing of the launch has also raised eyebrows, with MrBeast recently making headlines for all the wrong reasons. Does this launch add fuel to the fire? Regardless of your opinion on the creators, the product, or its timing, seeing creators come together at this scale to launch a collaborative brand is a big win. I still believe this is a huge opportunity for creators, and hopefully, we’ll start seeing more of them partnering up to build crossover brands. With the main caveat being, they are well thought out, ethical, and operationally professionally built. Imagine — could we see a Huda Beauty x Emma Chamberlain Coffee-flavored lip gloss hitting the shelves in the future? I hope so.

Is a TikTok Ban in the US Looking More Likely?

On April 24, President Joe Biden signed a bill that would officially ban TikTok in the US if ByteDance didn’t sell the platform within a year. ByteDance was given nine months from that date to divest itself from the app, with the possibility of a three month extension if significant progress was being made.

It’s now September, and while the media and TikTok users have become more subdued about the possibility of a ban, the government certainly hasn’t. Last week, TikTok had its first day in court, appearing before the Court of Appeals for the District of Columbia to argue why the platform shouldn’t be banned. Essentially, this case pits freedom of speech against national security, with TikTok arguing that a ban would fundamentally violate the First Amendment right to free speech. On the other hand, the Department of Justice (DOJ) claims to have compelling classified evidence that makes TikTok a clear national security threat. However, this information hasn’t been made public, preventing TikTok from reviewing or contesting the claims. The DOJ has claimed that revealing this evidence would itself pose a security risk.

The ongoing question around the balance of freedom of speech vs. national security is one to watch until the ruling is made.

According to sources, both parties have requested a court ruling by December 6. However, regardless of the outcome, the decision will most likely be appealed and ultimately brought before the Supreme Court, with a final ruling expected in January.?

With much of the government’s evidence still under wraps, what the outcome will be remains uncertain. Interestingly, a recent report by Pew Research Center showed that 32% of U.S. adults now support a ban, down from 50% in May 2023. At this stage, what the official ruling will be is anyone's guess.?

YouTube Still Reigns King

It’s no surprise that social media consumption is increasing across all age groups, but the growth within Gen Z in the US is particularly notable — up 7.7% according to recent reports by eMarketer. But where exactly is this generation spending its time?

While Meta’s platforms, such as Instagram, have typically won over an older Millennial user base, it’s projected that more than 75.4% of Gen Zers in the US will be Instagram users by 2025. This means Gen Z will become the leading generation on the platform for the first time. Meanwhile, although Facebook remains relevant, the amount of time users spend on the platform is decreasing year over year. Plus, the impending TikTok ban in the US may have an impact on the platform usage by the end of the year.?

That said, one platform still reigns supreme: YouTube. Over 89% of Gen Zers in the US use YouTube at least once per month. A recent report by Nielsen, released earlier this month, revealed that YouTube now holds the largest share of TV consumption by any media company, with 10.3% of US viewers watching YouTube content — surpassing Netflix, Disney+, and NBCUniversal. The platform’s growth is impressive and shows no signs of slowing.

So, what makes YouTube so appealing? Firstly, they’ve cracked the code on monetizing content while fairly compensating their creators. In a recent interview, CEO Neal Mohan expressed no intention of changing this model, even though it significantly raises YouTube’s operational costs. Monetization has been a consistent challenge for other major social platforms. Additionally, YouTube makes consuming content seamless, offering a blend of well-produced long-form videos as well as its newly popularized short-form "Shorts" content, keeping viewers engaged no matter the type of content they’re searching for. And now that casting content onto TVs is as easy as clicking a button, YouTube provides users with a flexible and convenient (not to mention free) viewing experience.?

It's clear that the way people consume content is changing rapidly, and so far, YouTube is leading the way— not only in offering diverse types of content but also in effectively monetizing it.

?? Rapid-fire questions:?

This week, we asked Brett Dashevsky our three rapid-fire questions. Brett is a Creator Economy expert, journalist, Head of Content Creators at Kickstarter , and Founder of Creator Economy NYC.?

What current trends in the creator economy are you most excited about?

I’m particularly excited to see creators diversifying beyond the platforms and connecting deeper with their audiences. We’re seeing creators do this by launching unique products and experiences, newsletters and digital products, as well as exploring live events/meetups - which people are craving in a post Covid world. A lot of the creator economy starts on the platforms, but where it goes from there is limitless. And it’s impressive to see creators take what they’ve built there, and leverage it for other areas.

What are the biggest hurdles the creator economy is facing?

For creators, I think their biggest hurdle is figuring out how to make what they’re doing sustainable - both from a brand standpoint, and mental standpoint. Today’s platforms really put creators in a box and on treadmills. The goal is certainly to break out of the box and hop of the treadmill, but doing so can be daunting. It’s why I’m excited about the work we are doing at Kickstarter. Give creators a chance to tap into the power of their fans, and Kickstarter’s community to launch unique ideas to the world, build some IP that allows them to transcend the platforms longer term.?

Name one company you think is doing interesting things within the creator economy.

I had the chance to interview a creator named Ilyssa Levy at VidCon (better known as Ilymation). Ilyssa is a story-time animator on YouTube, and I was blown away by her storytelling and ability to connect with her audience. She also uses her storytelling abilities to raise awareness on certain causes, and build community around that. What's cool about Ilyssa is how she's not just creating content, but fostering a movement and creating space for important dialogues. I am just always amazed at the wide range of creators and categories out there, and the stories of how they got into doing what they're doing, and how that is now fueling their livelihood. It really shows the potential of the creator economy to not just provide income, but to shape culture and drive change.

Additional shoutout to Sticks YouTube channel and the work those brothers are doing in the film space.?

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See you all next week!?

Jacques Keyser

Director of Programming & Industry Spokesperson - VidCon