Creatorverse: As Creators Leave Hollywood, States Could Soon Flash Tax Breaks to Woo Them

Hollywood’s entertainment hubs are proving to be slow to adapt to digital content

dude-perfect
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Hey Creatorverse readers,

Another day, another opening in the world of creators. This week marked the grand opening of Whalar Group’s The Lighthouse Brooklyn, a 34,000-square-foot content studio and shared workspace designed with creators in mind. 

As the entertainment industry turns more toward creators, these spaces are becoming more common. That’s why it’s kind of weird that tax credit programs for digitally focused creators has been slow to follow.

A representative for The Lighthouse Brooklyn told me that they weren’t given a tax break from New York. That’s not entirely surprising given how strict New York’s independent production incentives are. In addition to being limited to production companies that cannot be more than 50% owned by a publicly traded company, New York’s $800 million in funds a year excludes TV pilots, documentaries, talk shows, how-to programming, game shows, music videos and reality programs. That pretty much covers most user-generated content. 

California, which is home to The Lighthouse’s Venice Beach location as well as Dhar Mann (23 million YouTube subscribers) and Alan Chikin Chow’s (98 million YouTube subscribers) studios, isn’t much better. Though TV shows less than 30 minutes are eligible for the state’s $750 million a year funds, a representative for the state told me there’s no standalone program or credit for content creators. Reality, documentary, game shows and talk shows are still excluded. 

But states like New Jersey and Georgia are far more flexible. Jersey’s tax credit program includes digital media content, which broadly includes a majority of creator content. As for Georgia, user-generated content that’s only distributed through social media isn’t included in its tax breaks. But productions distributed through paid subscription-based platforms and free ad-supported streaming television (FAST) are. That gives certain creators another incentive to hop onto the FAST trend.

As production continues to decline in Los Angeles, the creator economy has consistently emerged as one of the few silver linings in the industry. But that silver lining is all over the place — literally. MrBeast (449 million YouTube subscribers) has already taken over North Carolina; Kinigra Deon (5.5 million YouTube subscribers) is based in Alabama and Dude Perfect (62 million YouTube subscribers) is in Texas. California and New York’s stricter tax programs combined with the fact that creators no longer need to be in LA or NYC mean the entertainment industry’s future is geographically shifting.

Now onto the rest.

Kayla Cobb

Senior Reporter
kayla.cobb@thewrap.com


Robegrill
Robegrill (Photo Credit: YouTube)

What’s New


NFL wants more creator-led broadcasts

After previously partnering with creators on livestreaming, the NFL is looking to score again. Ian Trombetta, the NFL’s SVP of social, influencer and content marketing, told Digiday that those Watch With broadcasts were “just the beginning” and that the league is “testing and learning.” Big news since creators and live sports are two of the biggest growth areas in all of entertainment.

If you need a reminder, the four streamers during YouTube’s Kansas City Chiefs vs. Los Angeles Chargers game were IShowSpeed (45 million YouTube subscribers), Tom Grossi (922,000 subscribers), Robegrill (4.3 million subscribers) and SKabeche (14 million subscribers).

The Motion Picture Association hits Meta with a cease-and-desist over PG-13 rating

Remember how Instagram announced it would start using a PG-13 label to better regulate its teen accounts? The MPA isn’t thrilled about that. The Motion Picture Association sent a cease-and-desist to Meta, the parent company behind Instagram and Facebook, over the practice.  

Speaking of Meta, the company launched a flagship physical store in West Hollywood to show off its AI glasses and VR headsets. Oh, also, Mark Zuckerberg was busted for running an illegal school out of his Palo Alto compound. That last part doesn’t really have anything to do with creators, but it is like “The Ring.” Once you see it, you have to pass it on.

Creator Camp signs a three-picture theatrical deal with Attend Theatrical Marketplace

Creator Camp, the creator-focused production company behind Baron Ryan’s (2.9 million TikTok followers) upcoming “Two Sleepy People,” signed a three-picture theatrical deal this week with Attend Theatrical Marketplace. Backed by The Fithian Group, Attend’s whole deal is bringing mid-ranged movies back to theaters. Since “Two Sleepy People” launched its micro-tour last week, attendance across four cities has averaged $10,429 per screen.


Crime Junkie
“Crime Junkie” (Photo Credit: YouTube, Audiochuck)

By the Numbers


More than 390 million users have streamed a video podcast on Spotify

During Spotify’s third quarter earnings report, the company shared that its video podcast collection includes nearly half a million shows, a 54% increase compared to last year. Not only that but more than 390 million users have streamed a video podcast on the platform (Spoiler: I’m one of them). Overall, video podcast consumption has increased by more than 80% since Spotify launched its partner program in January, which helps qualifying creators better monetize their shows.

Roblox has already paid creators $1 billion this year

In addition to clearing $1.35 billion in revenue in its third quarter, Roblox announced it’s already paid $1 billion to creators this year through its Developer Exchange (DevEx) program. This is the first time the gaming platform’s creators have cleared the big B. For comparison’s sake, in all of 2024, Roblox paid creators $923 million. 

The 1,000 most successful Roblox developers received an average of $1.1 million in the last 12 months, a 40% increase compared to a year ago. Since Activate Consulting predicts that virtually all online adults will become active gamers by 2029, that’s probably a smart investment.

The Atlantic and Wired’s pushes into the creator spaces have paid off

There’s been a lot of talk about bringing creators into the newsroom with CNN’s push into the space. But the publications that have made this pivot are already reaping the rewards. Case in point? The Atlantic writer Nicholas Thompson has over 1.6 million LinkedIn followers, partially owing to his daily “Most Interesting Thing in Tech” post, as well as a monthly newsletter with over 500,000 subscribers. As for Wired, treating journalists like influencers resulted in an 800% increase in views on Instagram videos and a 94% jump in subscriptions.


Ms. Rachel
Ms. Rachel on YouTube (Photo Credit: YouTube)

Movers and Shakers


Ms. Rachel is Glamour’s Woman of the Year

The queen of kid’s content is getting her due. Glamour named Ms. Rachel its 2025 Woman of the Year, and it’s not difficult to understand why. With more than 17 million YouTube subscribers, 13 billion YouTube views, a toy line and a Netflix series, she’s become one of the biggest creators in the industry.

Josh Flagg’s Estate Media hits $6 million in revenue

After learning the ropes on Bravo, “Million Dollar Listing Los Angeles” star Josh Flagg has brought his real estate expertise to the digital age, and it’s paid off. Estate Media has cleared $6 million in revenue and closed a $1 million seed round. The secret? Catering to both real estate agents and enthusiasts, focusing on education instead of just entertainment and meeting brokers on the platforms where they already are. 

Flagg isn’t the only cable star who’s moved to the digital sphere. “Chopped” creators Cleve Keller and Dave Noll launched a new culinary series, “Countdown to Delicious,” on Wednesday.

Kendall Vertes joins Alex Cooper’s Unwell Network

Lifestyle influencer and former Abby Lee Dance Company cast member Kendall Vertes has joined Alex Cooper’s Unwell Network. The podcast “Not So Little” is being described as a weekly vlog-style talk show that dives into Vertes’ (11 million Instagram followers) life. The show will premiere Nov. 13 on all audio platforms and YouTube.


Who to Watch


WeMadeItTogether

It’s still spooky season, right? No? Well, you should still watch WeMadeItTogether, which is lowkey responsible for one of the funniest shows of the year. Since April, the skit-focused channel (which has 797 million TikTok followers) has been chronicling the saga of a man who’s knowingly staying in a haunted house because rent is cheap. It’s a brilliant mix of effects-heavy horror and mad-dash comedy that should make anyone missing “What We Do in the Shadows” laugh.


Bonus Content

  • How Many AI Artists Have Debuted on Billboard’s Charts? (via Billboard)
  • Education and ‘Bespoke’ Deals Are Key to UTA Landing the Biggest Creator Projects in Hollywood (via TheWrap)
  • AI Agents For Creators: Now Every Influencer Can Have A Digital Tea (via Forbes)

Want more? Explore WrapPRO now.

This report provides a weekly deep dive into the creator economy. It highlights key trends, political and technological developments, data points and industry leaders all with the goal of making you smarter about this constantly evolving space.

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