As creators increasingly move into Hollywood, deal terms can put their IP at risk

The entertainment industry is witnessing a surge in creators venturing into Hollywood, leading to complex deal terms that could jeopardize their intellectual property rights. At Advertising Week New York, multiple panels discussed the implications of these partnerships. The primary concerns revolve around whether these collaborations empower creators to build and control their intellectual property, or if they primarily grant studios, streaming platforms, and brands access to the creators' audiences.

In an interview with Digiday, three agency and media executives, two established creators, and a creator economy lawyer shared their insights on the financing, distribution, ownership of intellectual property, and the factors that make these partnerships successful for both brands and creators. A common warning echoed throughout the discussions was the potential for a flood of subpar, poorly developed creator-led projects in Hollywood due to the rush to replicate successful concepts like "Obsession" and "Backrooms."

Akshay Mehta, CEO of Whalar Group's creator-led Lighthouse Studios, reflected on his experience from nearly a decade ago when production companies and studios were just beginning to explore the creator economy. He noted that at that time, the studios were primarily interested in renting or purchasing a creator's existing audience for a film, rather than investing in building a lasting media brand with them.