Famous Allstars: Indonesia's "Creator Economy" Has Not Reached Peak Growth, Exploration Room Is Still Large (Part I)

For the Co-CEOs of Famous Allstars Alex Wijaya and Arief Rakhmadani, the industry creator economy Indonesia is currently entering a thrilling period. Why? The development is so fast, the market is very enthusiastic, and there is a lot of space to be explored, from the point of view of creators, innovators, to owners. brand. 

They have this view considering that Famous Allstars or FAS are not new players in this industry. FAS has been watching developments for a long time creator economy, from when the monetization model was still conventional until now where creators are increasingly independent.

If you follow his journey, FAS was founded from a business merger between Famous and Allstars in 2019. Famous is overshadowing channels Popular creative content of Indovidgram, KokikuTV, Avenu, and Indovidgram in 2012-2015. Meanwhile, Allstars is a platform that connects brands with influencers. FAS also received funding from media conglomerate company EMTEK Group and synergized with RANS Entertainment in 2021.

In this exclusive session, DailySocial summarized a long chat with Alex Wijaya and Arief Rakhmadani regarding the industrial landscape, monetization, to the business plan this year. More details, we present in two parts.

creator economy have a broad definition so there is an assumption an influencer also included. How would you define these two things?

Alex (Al): Definition an influencer according to the translation: someone who influences through his creations. Because technology moves quickly, the terminology--at least from my point of view--to be a little insignificant.

Formerly an influencer tidak exist at the beginning we built this business. Over time [context: an influencer gaining popularity], this terminology is dwindling. Influencers want to be called a creator. Why? Because they feel they produce something and the shape can be of various kinds. Usually, creators used to be synonymous with works of art, now they are different. Short video content can be considered as a creation. If today, I create digital content on Instagram, YouTube, or TikTok, I can call myself a creator.

creator economy This is interesting because anyone can be a creator and influence. What sets it apart is its scale and capabilities. I could be a creator, but the scale of creativity is still inferior to other creators.

For example, the term livestreamer will definitely be bigger in the future. is livestreamer called an influencer or content creator? Certainly can. However, livestreamer may have skillset different from an influencer Karena an influencer not necessarily possible livestreaming. Temporary, an influencer maybe have the ability copywriting which is good, but not necessarily can live for one hour. Youtubers can't necessarily livestreaming, because the content is mostly Recorded, can be repeated, or edited.

The artist who drew later might be known as NFT artist in another 2-3 years. The terminology changed because creator economy form a new identity and employment. So, [new] terminology will continue to emerge over time as the industry creator economy will be wider.

In the era of Web3 presence, today's industry creator economy What phase is Indonesia in?

Arief (Ar): I've been following talkshow which is filled by Li Jin, Founder and General Partner of Atelier Ventures. This VC has a lot to do with [startup] creator economy. In his presentation, he said there were four phases creator economy.

First, creator economy version 1.0 was when the internet came where [any] individual could be a creator. Then, in version 2.0 creators can reach [audience] via the platform. In this phase, creators have follower and monetization via advertising and sponsorship, which [this model] is in abundance in Indonesia. In era 3.0, creators become independent business and direct monetization from their fans. Later there will be creator economy 4.0 where creators and fans can collaborate to create creations or ventures together.

With the emergence of Web3, it doesn't mean creator economy 2.0 is immediately abandoned. In this phase, an influencer menjadi content creator or vice versa, will continue to grow. We look at the industry creator economy will evolve. How fast? Depends on the market. China and the United States have become mecca for services livestreaming. Here, we just started. Many friends in the industry are creating platforms for livestreaming, like GoPlay. It's a very exciting industry we are in.

Famous Allstars also explores what can be done in this phase. How can we maximize the potential in each phase, both Web2 and Web3. For example, what can we do in influencer marketing? What can creators do with IP in Web3? We've seen the potential and have come up with something. Especially especially on Web2 and Web3, we are going to have exciting projects.

FAS's current position is very strategic because we have been in the industry for a long time creator economy. We know where, we made a web series, we know how to move this IP to NFT. This becomes interesting because the IP of the creator must be respected, ownership that's very important

By: In the last five years, technology growth in Indonesia has been massive. Internet penetration has reached 70 percent and Indonesia's smartphone penetration is the fourth largest in the world. Our population is large.

Actually, an influencer or content creator we have started from 7-8 years ago, but the infrastructure is not yet mature. Now smartphones and data plans are getting cheaper. Plus our large and diverse population. These factors are very significant to drive the market creator economy in Indonesia.

Indeed, industry creator economy 3.0 comes early in Indonesia. Even era 2.0 has not yet reached the peak of growth (peak growth) here. Because of this, it's as if there is overlap between Web2 and Web3 in Indonesia. The question is, will the creators of 3.0 be a new player? Do 2.0 creators have to convert to 3.0? The answer, no one knows. In my opinion, Web3 is still very broad and can grow fast, but use case-it's not yet settle.

The main point, Web2 is still too far away [in Indonesia] so that its market potential, without the need jump ke Web3, will still grow significantly. It's a very exciting moment ahead because later creators will not only be able to create works, but also have Intellectual Property (IP). For now, it's too early to tell.

Web2 will still grow rapidly in Indonesia in the next five years. From the side supply, the number will continue to grow, although there is no data from the side demand. We believe in the market an influencer reached IDR 3 trillion, even this is a conservative number. Brand still spend the budget on conventional media. So, supply and demand we haven't peak.

Monetization of works in the Web3 era has become more independent. is brand deals will it still be relevant for creators?

By: There are two sources creator monetization. First, brand cooperation with creators in any form, be it reviews, post, exposure, talents, or livestreaming. As a comparison, livestreaming in China paid per sale (pay-per-conversion). In Indonesia, this model does not yet exist, it is still paid in advance. The main thing is, the money comes from brands. Second, creators can now monetize from fans or Direct-to-Consumer (D2C). For example, there are platforms that allow fans to donate to creators, not from brand. So, the monetization model, both from brand nor fans/audience will not be lost. In fact, when it comes to market potential, brand deals will get bigger.

For creators, it becomes exciting period Karena revenue channel-it increases. Used to only rely on brand, now creators can directly monetize from fans. For one gamer, livestreaming with the donation model might suit them. But five years ago, they had not thought [hobby] Gaming] can become a profession. I believe from angle any [monetization], the industry will get bigger. 

Air: For brand, creators give another marketing channel which is interesting. They see how creators create reviews organically or influence their friends to buy a product. It will definitely develop. That is, the opportunity [collaboration] and revenue channels will get bigger as Web3 develops. Not that Web2 just disappeared. Precisely Web2 and Web3 can go hand in hand, there is independence.

There are 120 thousand an influencer on our platform, where the majority are an influencer nano and micro with follower 1.000's to 100's. We don't want only milking market potential, but also develop its resources.

What is your role in determining the right monetization model for creators?

By: Famous Allstars doesn't determine the creator's selling price, but it's important to make sure that kreator and brand can transact securely on our platform. We know there must be concern. From the creator's point of view, brand do not pay for content that is already created. As well as brand, creators want to be paid upfront, but brand worried about the content not being worked on.

On this platform, new payments will be forwarded when the creator has completed the work accordingly brief from brand. Likewise creators, there is a sense of security that they will be paid because the payment system is through the platform. Once the work is completed as directed, the creator will receive a payment. So, there is no need to constantly charge brand. So, it's not about determining monetization, but how to create an ecosystem to facilitate actors creator economy. 

In addition, the market creator economy in Indonesia is still very large. We don't want to push creators Existing just. Exactly necessary nursetalents new in the future. Many people have talent, but have not met the right ecosystem and container. FAS is committed to finding it.

What is your view on regulation to accommodate the industry creator economy in Indonesia?

By: It's still early talks, but we plan to form an association [creator economy]. Arief and I in parallel began to move to embrace friends in this industry. We are trying to rule out business views. We are aware that the bigger the industry, the better it will be for players.

We do this before we talk about policy. I think the first and foremost agenda is to educate this industry, whether it's about the potential of creators, the rights that creators get, to how to solve a problem. All have the same goal of industrial education.

This education is not only creators, but also brand. Between agency only, so far there hasn't been standard rules. So, it's a jungle out there. This industry is developing very fast, but growth is fast without being limited the right one can make the industry chaos. So, we think it's important for old players to take part in education so that new players can learn from our mistakes seven years ago. Creators can learn from fallen creators

Air: At FAS, we also provide education, both related to content, creator rights, Intellectual Property, to taxation. But, we want this education together stakeholder others so it is not done in their own way. If there is no uniformity, industry creator economy can be compartmentalized.

It's all good stakeholder can work together. The industry will become stronger, the opportunities will be greater without a fence that can make sustainability reduced industry. However content creator is not just a banner, it's a human being. There needs to be trust and credibility.