Emerging Trends in Creative Studios After COVID

GenAI will split the creative industry in two, and I’m having some serious déjà vu. Hear me out. For the past year, I’ve always said in my talks that GenAI's impact on creativity will mirror what YouTube did for media. I should know. I spent 7 years leading the partnerships team at YouTube, right as the creator economy was exploding. And at first, the parallels felt positive. YouTube gave anyone with a camera a global stage. The early, invite-only Partner Program (YPP) meant YouTube could control the supply of ad inventory, ensuring creators earned meaningful revenue. It was a new, vibrant ecosystem. The narrative of democratisation in full swing. But then the floodgates opened. When the YPP eligibility criteria were lowered globally, the supply of content suddenly overwhelmed advertiser demand. I was on the front lines, on calls with creators, trying to explain why their RPMs were plummeting. It was a classic supply shock. The promise that everyone could be a full-time creator turned out to be a myth for most. As of 2024, a staggering 97.5% of YouTubers earned less than the U.S. poverty line via ads, while the platforms have scaled into giants. Now, I see the same pattern emerging with GenAI in the advertising and marketing world. Just in the last two weeks, I've attended two different launch events for new, AI-first creative studios. Their pitch is compelling: "same quality for less budget." They are built to win business from incumbents by competing on cost efficiency. We're already seeing established players like WPP feel the pressure. We’re currently living through the golden age of GenAI democratisation. But, I believe GenAI is on a path to becoming the commoditisation engine of creativity. Which will split the market in two. THE EXECUTION The day-to-day work of creating social videos, performance ads, basic animations will become a hyper-competitive, low-margin race to the bottom - even more so than today. THE STRATEGY The uniquely human part with the core idea, the deep cultural insight, the emotional intelligence will become priceless - even more so than today. As the 'how' gets commoditised, the 'why' becomes everything. When everyone can make anything, the only thing that matters is the brilliance of the original concept. I'm still excited about the new talent GenAI will unearth. But I’m worried the economic model being built will, once again, primarily benefit the tech platforms, not the creatives themselves. Do you see it unfolding differently? Is this race to the bottom preventable? And what happens when even the strategy can be done with advanced AI models and agents?

UK and US Agencies Are Quietly Moving Capabilities To... 👉 Colombia 👉 Philippines 👉 South Africa These markets are becoming the new frontlines. Why? ❌ Margins are under siege ❌ The model is being rewritten ❌ And the new map isn’t where you think Inside these agencies, a quiet transformation is underway. → It’s not loud → It’s not flashy → But it’s changing everything These agencies are redrawing: → How work gets done → Where it gets done → Who gets to do it And it’s all being driven by one relentless pressure: 👉 MARGIN. ❌ Clients want more for less. ❌ Timelines are shorter. ❌ Scopes are tighter. And agency leaders face a brutal equation: → Protect profit. → Keep clients. 🌀 The shift... For decades, agency operations revolved around legacy HQs → London → New York → Singapore Post-COVID, the landscape shifted. ❌ The legacy model no longer pays the bills ❌ Holding on to it isn’t just outdated, it’s commercially unsustainable What we’re seeing now is a deliberate strategic shift: → Away from central delivery models → Away from over-reliance on high-cost talent hubs → Toward leaner, smarter, and more agile support systems 👉 This is not about cutting corners... It’s about building capability where it delivers: ✅ Strategic impact ✅ Operational efficiency ✅ Commercial advantage 🌀 Where the work is happening Today, more work is pitched and sold in Tier 1 markets… …but delivered elsewhere at scale, with quality, and increasingly with pride. 🟠 LATAM → Colombia is now a front-foot delivery hub → High-calibre output → Time zone alignment → Deep, scalable talent pools → Cost structures that protect margin 🟢 Africa → South Africa leads in digital services → Kenya is scaling in data and performance → Both offer high-quality, English-speaking talent and cultural alignment 🔵 Asia → The Philippines remains strong in content ops → Vietnam is emerging in UX and tech delivery → Thailand is gaining ground as a creative production hub 🌀 My take... 👉 This isn’t just about cost 👉 It’s about control This shift unlocks more than a margin. → It creates optionality. ✅ Unlock high-performance global talent ✅ Scale capacity up or down with commercial reality ✅ Increase efficiency without compromising marketing impact ✅ Build hybrid models that deliver global scalability and local relevance → Independent operators → Exit-focused founders → PE-backed scale-ups 👉 This is how you... ✅ Protect margin ✅ Maximise valuation ✅ Scale with confidence 🌀 My final thought... 👉 Capability is the new HQ. Let’s be clear: → It’s not a workaround → It’s not a step down → It is the new strategic operating model.... ... how smart agencies are building 👉 Profit 👉 Resilience 👉 Relevance in a high-pressure market ✅ Driven by agility ✅ Built around performance ✅ Powered by global capability So if you’re still debating whether to offshore, you’re already behind. Because the question isn’t “should we?” It’s “How fast can we?” ivanfernandes.me

This shot costs approximately $0.10. A Transformers movie costs hundreds of millions. Let that sink in. We are entering the era where tools like Seedance 2.0 can generate cinematic-quality visuals at near-zero marginal cost. As an AI consultant and futurist, here’s what I believe this means: 🎬 1️⃣ The Collapse of Production Economics High-end visuals are no longer tied to: Massive crews Physical sets Expensive render farms 18-month production cycles Within 3–5 years, AI-native studios will operate with: 90% smaller teams 80% lower budgets 10x faster iteration cycles The barrier to entry in filmmaking is dissolving. 🚀 2️⃣ The Rise of the Solo Studio Prediction: By 2028, we’ll see: One-person AI studios generating Netflix-level series AI-powered ad agencies replacing traditional production houses Creators launching global IP without investors The next billion-dollar media brand may start from a laptop. 🧠 3️⃣ Creativity > Capital When visuals cost $0.10: Taste becomes the differentiator Storytelling becomes the moat Distribution becomes the battlefield Money will no longer guarantee cinematic dominance. Creative direction + AI orchestration will. 🌍 4️⃣ Personalized Blockbusters Within a decade: Movies will adapt to viewer preferences in real time Alternate endings will be generated dynamically You may become the protagonist of your own version Entertainment becomes interactive, generative, and personal. This is not just “cheap VFX.” It’s the industrialization of imagination. The question is no longer: “Can we afford to produce this?” It’s: “Do we know what’s worth producing?” The studios that survive won’t be the biggest. They’ll be the fastest learners. #AI #ArtificialIntelligence #GenerativeAI #AIConsulting #FutureOfMedia #AIRevolution #DigitalTransformation #Innovation #TechTrends #MediaDisruption #ContentCreation #AIStudio #Entrepreneurship #StartupEcosystem #FutureOfWork #CreativeEconomy #AIVideo #EmergingTech #TechLeadership #Futurist

🚀 Where’s design headed next? I had a fascinating chat recently with a Chief Design Officer about the evolving state of the industry, and thought I’d share a few trends that stood out. Some might already be on your radar, but others are emerging fast and reshaping how teams work. Here’s a quick roundup of what we discussed: 🔮 1. AI-Enhanced UX – Hyper-personalisation is becoming standard, with interfaces adapting in real time to user behaviour. – AI copilots (like in Notion and Linear) are embedding deeply into daily workflows. – Predictive design is no longer futuristic — users are starting to expect it. 🧠 2. Neuro-Inclusive & Accessible Design – More products are being designed with neurodivergent users in mind (think reduced motion, adaptable contrast, flexible layouts). – WCAG 2.2/3.0 is gaining traction, especially in B2B and public sector. – The EU Accessibility Act (2025) is on the horizon — time to start preparing. 📱 3. Micro-Interactions & Functional Motion – Motion and haptics are being used more thoughtfully to support clarity and flow, not just for flair. – They’re becoming vital for communicating hierarchy, feedback, and progression without adding noise. 🎨 4. Design Systems as Products – Leading teams are now treating design systems like actual products: with roadmaps, governance, and KPIs. – Token-based systems are becoming the default for scaling across platforms. Curious if you’re seeing the same or different trends in your world. Always keen to compare notes. #UXDesign #ProductDesign #Accessibility #AI #DesignSystems #InclusiveDesign #Neurodiversity #FutureOfDesign

COVID didn’t just change our schedules. It changed our spaces. Homes turned into offices. Dining tables became desks. Every inch had to serve more than one purpose. As designers, we couldn’t ignore it. We had to rethink everything—from how spaces flow, to how they make people feel in times of uncertainty. This wasn’t about trends. It was about survival, comfort, adaptability—and it shaped the way I now approach every single project. 1/ Spaces had to do more : A living room couldn’t just look good—it had to work as an office, a gym, a classroom. We started designing for real life, not just the camera. 2/Health and well-being became part of the brief : Good light, fresh air, plants, clean materials—it all matters now more than ever. People are more conscious about what they breathe, touch, and feel inside their homes. 3/ The home office became sacred : No more “just a desk in a corner.” Clients now want calm, focus, and intention in their work zones—something that helps them show up properly, even from home. 4/ Touchless and easy-to-clean design is in : We saw the rise of sensor taps, smooth finishes, and hygiene-first choices—especially in hospitality and retail. 5/ Local and sustainable got real : Shipping delays made us all rethink. Local craftsmanship, faster timelines, conscious materials—these weren’t just better options; they were the only ones. 6/ Outdoor spaces found their value : That ignored balcony? It became a sanctuary. People now crave even the smallest connection to the outdoors—and we started treating those spaces with the respect they deserve. We’re not designing for the same world we knew before 2020. And that’s a good thing. Our spaces are more personal, more purposeful, and way more honest.

The creative technology media sector - which includes the production of content for XR, animation, VFX for movies TV and ads, and video games - is on the cusp of several seismic shifts — these would be driven by new intelligences incl. AI/ML; economic volatility, and a radically restructured consumer profile driven by new digital landscapes. Hence, even as traditional formats (film and linear TV) waver, entertainment content is taking root and accelerating in new, environments — with XR, interactive screens, and spatial media rewriting the rulebook. (And just wait till smart glasses take off!) Legacy studios and channels now stand at critical crossroads. All players are struggling with one key question: what’s worth investing in next? According to McKinsey, the next wave of digital disruption could actually revitalize the creative economy. As someone who’s weathered multiple transformations in the creative tech space (over these past 25+ years), I see five playing fields (battlegrounds?!) emerging! Each can unlock $2 to 5Billion in incremental value within 5 years (2030): 1. Content & Commerce Convergence 2. AI-Native Creative Software 3. Distributed Virtual Production Metholologies (Cloud enabled production) 4. Connectivity, Data & Intelligence Infrastructure 5. Tech Services that leapfrog the Legacy Content Production Stack (the studio spaces we championed over the past years will not be the same in the next 2-4 years). “To capture this value, we must think differently and act decisively. That means tackling: • Structural market fragmentation • Capital access gaps • Outdated regulatory frameworks • IP sovereignty and data security risks • Geopolitical fault lines in tech supply chains • And yes, the rising specter of digital tariffs!!” Therefore, the future of content is not just about storytelling. It’s about building new operating systems for creation, distribution, and monetization — across platforms, nations, and shifting realities. We look forward to architecting the next generation of global media production— with agility, vision, and courage. Watch this space!! #birenghosespeaks #AI #MediaInnovation #VirtualProduction #CreativeEconomy #DigitalTransformation #TMT #XR #FutureOfContent #McKinsey #CreativeTech #ContentEcosystems #StudioTech #AIEconomy

So, holding cos are going to begin selling off assets and consolidating their teams. 3 predictions that’ll mean good news for the creative industry: 1. Holding co CEOs will become Global client leads. Holding cos will shift away from CEO centric structures to client lead because clients don’t care about internal politics and P&L siloes. A CEO of an agency is currently tied to their agency’s interest. A client lead is positioned as neutral. Picking the best talent to match the clients challenge. Building trust, simplicity and better alignment to growth. This will either incentivise them to stay, or they’ll get snapped up by a PE backed group looking to scale… speaking of which… 2. Opportunity for PE and independents. Private equity loves creative businesses with $20- 150M revenue, high margins, and growth potential. If holding cos offload agencies, PE firms and well-capitalised independents can swoop in, buy them at attractive multiples, and invest in growth. This will fuel a new wave of “neo-holding groups”. (Hello Common Interest & MSQ) But, this time, they’ll be built with client outcomes, tech and culture and ‘belonging’ at its core. (Hello, Brandtech) When assets are spun out, founders and leadership teams often regain more control, with PE backing them to grow again. That creates fresh competition for holding groups - and, plainly, better cultural alignment for talent who’ve been frustrated by bureaucracy. To all of the ‘war time leaders’ that have been through merger after merger… those skills will be in high demand, but the upside will be more like a 7 figure check if you deliver the growth. 3. Freelance and fractional will be a lucrative career again. The irreversible threshold that COVID gave us was remote work. That meant people could work from their bedrooms. And not just for one business at a time. And that meant that good freelancers / fractional leaders could earn 4x their permanent income. (Remember the great resignation?) Then we had a global recession, people returned to their offices and made it harder for the Multi- jobbing freelancer. By holding cos restructuring and selling off assets, we’ll see cash strapped agencies with confusing red tape around their hiring, returning to a model that requires a highly curated global freelance bench of talent. Not a standing army. This could mean being based in Cape Town but working with $1BN clients via an agency in Oregon. It won’t feel instant, but as the creative businesses remodel their offerings and restructure their operating models, the talent demand will increase. The way to spot a good opportunity is by smelling the difference between somewhere that is building to win vs building not to lose.