People
People
Philip Alberstat
Senior Advisor - Los Angeles
We believe that by the end of 2027, the creator economy will go through a meaningful business model and valuation reset. Within the next 18–24 months, one or more well-known venture-backed creator economy companies will fail, restructure, or seek an exit at a materially lower valuation than prior funding rounds implied. The winners will be creators and companies with diversified revenue and sustainable business models.
The creator economy looks strong on the surface. But beneath that growth, the market is under pressure.
U.S. creator ad spend is expected to reach $44 billion in 2026, up about 18% year over year, after 26% growth in 2025. In the attention economy, creators are not only competing with other creators. They are competing with streaming services, sports, podcasts, gaming, social platforms, short-form video, and live experiences.
Key themes
Why we believe our prediction to be true
Creators remain highly fragmented, while the financial rules are still shaped by a small number of major platforms like YouTube, TikTok, and Meta. Those platforms control distribution, algorithmic reach, monetization rules, content policies, and access to audience data.
That creates a real imbalance. Creators may own their voice, their content, and the loyalty of their audience, but they often do not control the economic infrastructure around that audience.
Winners will be companies that aggregate creators and audiences, own or control rights, improve monetization, build commerce, manage data, and reduce platform dependence.
How we expect it to play out in the market
Creator economics are structurally broken, forcing consolidation. Even top creators like MrBeast cannot sustain standalone businesses on platform advertising alone—they rely on owned revenue streams: brand partnerships, merchandise, licensing, podcasts, live events, premium content. Aggregators like Night (which raised $70M in 2026) are building holding companies across talent, infrastructure, and commerce.
Content quality is converging: scripted features from digital creators now reach theatrical—Iron Lung self-financed to 4,000 screens; Obsession earned $500M+ global box office on a $750K budget. Legacy media are loosening rules to embrace creator formats and direct-to-audience models.
The investment opportunity
By late 2027, institutional investors could fund creator-led production directly, chipping away at traditional studio leverage. The opportunity for PE is identifying creator economy businesses with durable economics before repricing.
For legacy media, decide where to acquire, partner, or compete. For talent agencies, representation alone is insufficient—operate platforms that help creators build businesses.
Scale matters only when converted into owned relationships, monetization, and defensible value.
2027 Media & Entertainment Industry Predictions Report
The media and entertainment industry is entering its next phase of transformation. As AI reshapes operating models and economics, businesses across the sector are under growing pressure to turn attention, investment, and innovation into sustainable value. Click through to explore the six shifts we believe will shape the year ahead, and the opportunities they create for businesses ready to act.
Learn more about AlixPartners' Media & Entertainment Report in our other chapters
