Roblox is making another big move by beefing up its version of a creator fund.
👉 Background: Roblox is the online game platform where you can play games created by other people or make your own games. It's known for its simple blocky graphics, but there's some sophisticated stuff going on under the hood.
👉 What happened: Now Roblox is making another big move by beefing up its version of a creator fund. It's chucking a casual extra $US10 mil in its Game Fund to incentivise creators to create high quality content in its ecosystem.
👉 What else: Everyone from TikTok to Spotify… Instagram to Roblox is dabbling in creator funds… and it’s because they all want to create a network effect.
💡A network effect is the magic that happens when a product or service increases in utility when more people use that product or service.
💡There are many examples of platforms that have become more valuable when their network expands. Think: e-commerce stores like eBay and Etsy, and every social network.
💡 So it's no coincidence that TikTok launched a $200 million fund to help bring the next Addison Rae into the limelight. And Instagram launched a $1 billion fund to also bring the next Addison Rae into the limelight. It's a creator's world and we just live in it.
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