People
Jeff Goldstein
Americas Leader, Technology, Media, and Telecommunications, Partner & Managing Director
Boston
People
Jeff Goldstein
Partner & Managing Director - Boston
In 2027, we predict three shifts: renewed content investment in North America of around 4%, underwritten on monetized engagement rather than subscriber growth; more partnerships and consolidation in Europe as broadcasters and global streamers seek local content, audience, and scale; and live sport as the main battleground for acquisition and advertising revenue.
For the fourth year in a row, we begin our Media & Entertainment Industry Predictions Report with the streaming wars. Last year, we predicted the rise of the “frenemy” and with it more competition, consolidation, and cooperation as streamers and broadcasters sought new ways to win customers, reduce churn, and improve profitability. YouTube leads on reach, but the contest in 2027 will be over engagement and margin rather than audience size.
We expect more disciplined investment in North America, more partnerships and consolidation in
Europe, and intensified competition for live sports, with streamers expected to exceed $16B on
sports rights in 2027. Operators should underwrite content and rights against the full monetization opportunity across advertising, licensing, distribution and IP extensions, while investors should look for revenue per viewing hour to rise alongside content spend.
Key themes
Why we believe our prediction to be true
Subscriber growth is plateauing while content budgets keep rising—but the math no longer works. Streamers invested $101B of the $255B global content spend in 2026, chasing acquisition. That era is over.
Each dollar now has to drive longer engagement, sustain retention, and unlock new monetization across windows, ads, and IP. The winners will earn 50% more revenue per viewing hour than competitors trapped in low-margin subscription models.
How we expect it to play out in the market
In North America, streamers are returning to aggressive spending—Netflix 10% higher to ~$20B, Disney at $24B, Paramount adding $1.5B—but shifting focus to retention. Consolidation (Paramount-Warner Bros, Fox-Roku) pairs content scale with technology and efficiency.
In Europe, partnerships replace greenfield builds: local broadcasters hold audience relationships that are cheaper to access than build independently.
Live sports are the proving ground: Fox's FIFA World Cup streaming drove 2.8M sign-ups (93% new). Streamers will spend $16B+ on sports rights in 2027, focusing on turning event spikes into lasting engagement through bundles, ad tiers, and cross-selling.
The next phase of the streaming wars will be decided by monetized engagement
In 2027, content, sports, distribution, advertising, and technology will increasingly be judged by how effectively they deepen engagement and convert it into revenue. The industry is entering a new cycle focused on the return generated from each dollar, pound, or euro of investment.
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
