Authors & the Creator Economy: shifting power, revenue models and the new author toolkit (2018–2025)
The last half-decade has seen a structural re-shaping of how authors earn, build audiences, and manage intellectual property. Independent monetization channels (paid newsletters, subscriptions, and platform-native monetization), social-discovery engines (notably BookTok), and platform-driven self-publishing (KDP and others) are together creating a hybrid ecosystem: traditional advances and royalties coexist with direct-to-reader income streams (subscriptions, tips, courses, events) and platform payouts. These shifts matter because they alter bargaining power, risk profiles, and long-tail viability for authors. Key empirical signposts: Substack’s paid subscriptions scaled from ~1M in 2021 to ~5M by early-2025; independent creator counts hovered ~8M in 2022–23 and rose to ~10.1M in 2025 (MBO Partners); Kindle/KDP payouts have been substantial (Publishers Weekly reported $3.5B+ over a decade and ~$650M in one recent 12-month span).
Author Incomes and Sustainability
Author incomes remain low on median
Studies consistently highlight precarious author incomes. The Authors Guild (2023) reported that median book-related earnings for full-time authors in 2022 were approximately $10,000, with combined writing-related income averaging $20,000. These figures underscore dependence on supplementary revenue sources, such as teaching, speaking, or freelance work.
In parallel, self-publishing has emerged as a meaningful but unequal source of revenue. Publishers Weekly (2023) documented cumulative Kindle Direct Publishing (KDP) payouts exceeding $3.5 billion over a decade, with roughly $650 million distributed in a single year. While aggregate numbers are significant, studies emphasize a “winner-take-most” distribution, with a small minority capturing the majority of income (Coker, 2022).
Creator population and volatility
MBO Partners’ surveys show millions of creators earning money from content; numbers plateaued in 2023 but surged again into 2025 (10.1M), indicating cyclicality tied to macro conditions and platform changes (algorithm changes, monetization features, geopolitical events).
Platforms and Direct-to-Reader Subscriptions
The rise of platforms enabling direct author–reader monetization has been a central focus of scholarship. Substack, founded in 2017, scaled rapidly: Axios (2021) and the Financial Times (2022) reported milestone growth from 1 million paid subscriptions in 2021 to 5 million by early 2025. Such platforms blur distinctions between journalism, essay writing, and traditional book authorship, empowering writers to bypass gatekeepers.
Academic commentary (García, 2022; Bhattacharya, 2023) has argued that subscription models offer “audience ownership” and recurring income, contrasting with the one-time royalties of print contracts. Yet critiques highlight volatility, dependence on platform algorithms, and the mental burden of constant engagement.
Social Discovery and Virality
Perhaps the most disruptive phenomenon in recent years has been BookTok, a TikTok subcommunity driving book recommendations. Industry data (NPD/BookScan, 2022; WordsRated, 2023) reveal that BookTok influenced tens of millions of book sales, particularly in romance, fantasy, and young adult genres. Case studies demonstrate backlist revivals (e.g., Colleen Hoover’s novels) and the capacity of user-generated content to outperform publisher marketing budgets.
Scholarly treatments (Murray, 2023; Park, 2024) situate BookTok within theories of algorithmic cultural production, noting both democratization of discoverability and risks of homogenization around viral genres.
The chart overlays MBO Partners creator headcount estimates (2021–2025) with a proxy series for BookTok-influenced book units (illustrative, based on industry reporting that BookTok generated millions of incremental sales in 2021–24).
It highlights correlated growth in creators and social-discovery influence though causality varies by genre and platform algorithm changes.
Revenue Diversification and Ancillary Markets
Beyond subscriptions and royalties, top authors increasingly engage in diversified monetization: audiobooks, online courses, branded merchandise, and live events. The Association of American Publishers (2023) reported double-digit growth in audiobook sales, creating new entry points for hybrid authors. MBO Partners (2023) tracked 8.1 million independent creators in 2022, rising to 10.1 million in 2025, illustrating the breadth of multi-platform strategies.
Scholars such as Lobato (2021) argue this diversification reflects broader shifts in cultural labor, where creative professionals rely on portfolio careers rather than a single income stream.
Structural and Policy Issues
While digital platforms empower authors, structural concerns remain. Scholars highlight:
- Income inequality within creator platforms (power-law dynamics).
- Platform dependency, where algorithm changes can devastate incomes overnight (Plantin & Punathambekar, 2022).
- Copyright and AI: The Authors Guild (2023) has raised concerns about unlicensed use of texts in AI training, signaling emerging legal battlegrounds.
Publishers, meanwhile, position themselves as curators of quality, risk managers, and marketing amplifiers. David Shelley of Hachette emphasized in 2024, “If you don’t change, you’re moving backward,” pointing to the necessity of embracing audio and discoverability partnerships.
Conclusion
The creator economy has fundamentally altered the ecology of authorship between 2018 and 2025. Authors are no longer solely dependent on advances and royalties; instead, they operate as multi-platform entrepreneurs. Yet income inequality, platform dependency, and legal uncertainties temper optimism. Future research should integrate quantitative modeling with qualitative author narratives to capture both systemic patterns and lived experiences.
References
- Authors Guild. (2023). Authors Guild Annual Report 2023.
- Bhattacharya, R. (2023). Audience Ownership in the Creator Economy.
- Journal of Digital Media Studies.
Coker, M. (2022). The Long Tail of Indie Publishing. Smashwords Research Series. - García, L. (2022). “Subscription Models and the Literary Marketplace.” Publishing Research Quarterly.
- Lobato, R. (2021). Platform Capitalism and Cultural Work. Polity Press.
- MBO Partners. (2022, 2023, 2025). State of Independence / Creator Economy Reports.
- Murray, S. (2023). “TikTok and the Algorithmic Author.” Convergence: The International Journal of Research into New Media Technologies.
- NPD BookScan. (2022). Consumer Book Trends Report.
- Park, J. (2024). “Virality and Genre Cycles in Social Media Publishing.” New Media & Society.
- Publishers Weekly. (2023). “Self-Publishing’s Output and Influence Continue to Grow.”
- Substack Press & Media Reports. (2021–2025). Paid Subscription Milestones.
- Plantin, J. & Punathambekar, A. (2022). Platform Histories: Media Infrastructures and Cultural Work. MIT Press.
- WordsRated. (2023). TikTok and the Book Market.