What comes next
Most of the people building these businesses expect the structure to formalize further from here.
An unusual wave of M&A is coming, according to Graham, which could see creators acquiring pieces of IP outright rather than being acquired by a studio, and creator-to-creator deals as portfolios consolidate. The growth of podcast networks built around a flagship creator, similar to what Cooper is doing with Unwell, previews a version of this trend, but the concept could extend naturally to YouTube creators, where they could expand their empire by acquiring other channels.
Chou is already brokering some creator deals—she is currently orchestrating a sale in the $30 million range—and expects additional activity in the related agency space, citing Accenture Song’s acquisition of Whalar in June, a deal reportedly worth more than $500 million.
Creators looking to finance their professionalization efforts have, until recently, had limited access to institutional capital. Traditional funds have been reluctant to wade into the creator economy, wary of its fragmentation and complexity, according to Chou.
That changed in June, when CAA and IMC launched their $250 million fund, called Compound. The venture will favor creator businesses, specifically those built on YouTube, that have already amassed a sizable audience. The approach aims to differentiate it from other early investments in the space, including a series of deals from Fox Creator Studios, which has invested in individual pieces of creator IP throughout the year.
“You don’t need as much money to be successful as in traditional forms of entertainment,” Miller said. “If something didn’t work, you can change it the next day and keep going.”
Still, despite the institutional enthusiasm, even the people writing checks are wary of overselling the moment. Compound is not underwriting billion-dollar outcomes, according to Miller. Its working assumption is that a nine-figure business is the realistic ceiling, at least for now.
But the investment of money and media expertise alone are proof that the calculus has changed in a meaningful way. This financial and executive scaffolding going up around creators shows faith in their relevance beyond third-party platforms—and their ability to build something new.
