C1 Reading Test – Platform Economics & Creator Monetization Models

Read the passage (≈380–420 words) and choose the best answer (A–D).

Digital platforms match creators with audiences and advertisers, but the match is never neutral. Recommendation engines distribute attention unevenly; small ranking shifts can redirect millions of views, and with them, income. To keep users engaged, platforms optimize for “session value,” a composite of watch time, click-through, and ad yield. From a creator’s perspective, this logic converts artistic choices into operational bets: a shorter hook, a different thumbnail, a faster upload cadence.

Monetization models ride on top of this attention market. Classic ad-revenue sharing rewards scale: the more eligible views, the larger the payout—subject to fluctuating CPMs that depend on season, geography, and advertiser categories. Membership and patronage (subscriptions, fan clubs) trade scale for depth, turning a fraction of an audience into predictable monthly revenue and stronger community signals that can even lift algorithmic ranking. Sponsorships and brand deals add a parallel economy where pricing follows perceived influence rather than pure view counts. Revenue shares from creator funds promise inclusivity, but when funds are capped and participation grows, per-creator payouts thin out like slices from a fixed pie.

Two frictions complicate the picture. First, platform dependence: rule changes, demonetization policies, or a tweak to “suitability” filters can erase expected income overnight. Second, multi-homing costs: diversifying across platforms hedges risk but multiplies logistics—format rewrites, audience fragmentation, and contract conflicts. Some creators respond with productization (courses, newsletters, digital goods) that moves part of the business off-platform, where they control pricing and data—at the cost of acquiring customers without the platform’s discovery engine.

Regulators tend to focus on labor classification and transparency: Is the revenue split explainable? Are sponsorship disclosures clear? Yet the deeper economic tension is about bargaining power. Platforms control discovery and monetization rails; creators supply the scarce good—original, repeatable attention. When discovery favors incumbents, newcomers face a cold start; when it favors freshness, veterans must sprint to stay visible. In practice, the healthiest ecosystems publish clear payout formulas, allow portable audience relationships (email exports, interoperable IDs), and offer appeal processes that move faster than the news cycle. These do not eliminate risk, but they convert a volatile lottery into a game with rules one can learn.