The Digiday Podcast: Who’s Winning the Creator Economy—and What the Paramount Merger & AI Action Plan Signal Next

Release Date: July 29, 2025

Introduction

In the July 29, 2025 episode of The Digiday Podcast, hosts Kameka McCoy and Tim Peterson delve into significant developments shaping the digital landscape, focusing on the creator economy, the recent $8 billion merger between Paramount and Skydance, and the White House's AI action plan. The conversation features insights from senior reporters Alexander Lee and Crystal Scanlon, providing a comprehensive overview of the current trends and future projections within media, marketing, and technology sectors.

Paramount & Skydance Merger: A Politically Charged Alliance

The episode kicks off with an in-depth discussion about the recent $8 billion merger between Paramount and Skydance, highlighting the contentious and politically influenced nature of modern mergers and acquisitions.

Tim Peterson expresses his skepticism, stating, “Where has come up is that it comes after the settlement of a $16 million lawsuit bought by the president earlier this month against Paris Paramount for coverage of the campaign trail back in 2024” (04:32). He critiques the merger for its political undertones, particularly the stipulation to eliminate diversity, equity, and inclusion (DE&I) initiatives and the introduction of an ombudsman. Peterson remarks, “So it feels very dystopian and autocratic in a way that so much feels these days” (03:36), underscoring concerns about increased political interference in corporate agreements.

Kameka McCoy adds, “There is no tuba. It has been determined that a new precedent has been set when it comes to mergers and acquisitions” (05:57). The hosts discuss how political considerations, such as presidential preferences, are now integral to the regulatory approval of mergers, diverging from traditional business-focused criteria like preventing monopolies.

White House AI Action Plan: Minimal Regulation, Maximum Ambition

Shifting focus, the podcast examines the White House's recently announced AI action plan, which appears to be more of an "inaction plan" regarding AI regulation.

Kameka McCoy summarizes the administration’s approach: “The administration wants to export American AI and for us to win the AI arms race. And the way to do that is working with privately held businesses to make sure that they have input into how AI shows up in the government sector” (07:19). The plan emphasizes innovation, free speech in AI model development, and minimal regulatory intervention.

Tim Peterson critiques the plan, questioning its effectiveness: “So is this an action plan or is it an inaction plan? Because my read on it, I was reading your coverage, it feels like a lot of this is like, actually we should not take much, if any action when it comes to regulating AI 100%” (07:34). The hosts discuss the implications of the plan, particularly in relation to copyright laws and the burgeoning legal battles between content creators and AI developers.

Impact on Copyright and Creators

The conversation delves into recent court cases where authors sued major AI companies like Meta and Anthropic over copyright violations. Peterson highlights a critical issue: “the authors would need to prove that their book sales were negatively affected by AI. But how do you prove a negative?” (16:01). This presents a significant challenge for creators seeking legal redress against AI misuse.

Kameka McCoy raises concerns about intellectual property, asking, “does it get to fall under copyright laws? There's a lot of unknowns here and there is no precedent that's being set” (10:28). The hosts emphasize the uncertainty surrounding AI-generated content and the legal frameworks needed to protect creators' rights.

Shifts in the Creator Economy: H2 2025 Insights

The latter half of the episode transitions to an analysis of the creator economy’s evolution in the second half of 2025, featuring insights from reporters Alexander Lee and Crystal Scanlon.

Crystal Scanlon provides a comprehensive overview, noting, “Goldman Sachs [...] forecast to be around double that to 480 by 2027” (20:00). She describes 2025 as the "year of professionalization" for the creator economy, highlighting the emergence of longer-term partnerships between brands and agencies, specifically through Agency of Record (AOR) models. This shift underscores a move towards strategic, sustained collaborations rather than ad hoc campaign-based engagements.

Alexander Lee observes a decline in traditional esports, stating, “esports … advertisers are just not interested in anymore. Previously it was kind of seen as one of the default ways to reach gamers at scale” (25:02). Instead, there is a notable pivot towards B2B creators on platforms like LinkedIn and Substack, catering to more specialized and professional audiences.

Decline of DE&I and Lifestyle Creators

The hosts discuss a troubling trend: the reduction in brand deals focused on diversity, equity, and inclusion. Alexander Lee explains, “Creators who were getting brand deals around Women’s History Month and Black History Month went from… to one or two in 2025” (29:26). This decline has forced many marginalized creators to seek alternative revenue streams, such as merchandise or part-time employment, fundamentally altering the landscape of influencer marketing.

Kameka McCoy adds, “lifestyle affiliate creators are being squeezed out... and they're being kind of squeezed out of the space” (24:48). The saturation of the creator marketplace and the shifting priorities of brands are making it increasingly difficult for generalized lifestyle and affiliate creators to secure lucrative partnerships.

Future Predictions: AI Integration and Creators as Media Agencies

As the conversation draws to a close, the hosts and guests offer predictions for the future of the creator economy.

Alexander Lee emphasizes the pervasive influence of AI: “AI is pervading every corner of how creators make their content” (41:02). He envisions a future where AI tools enable creators to produce highly sophisticated and scalable content, potentially blurring the lines between human and machine-generated media.

Crystal Scanlon anticipates platforms like LinkedIn and Substack expanding their roles in the creator ecosystem. “Substack is similar to LinkedIn… they are clearly moving towards being a creator marketing platform” (35:23). This professionalization aligns with the broader trend of creators adopting more strategic and business-oriented approaches to content creation and monetization.

Kameka McCoy predicts that creators will increasingly operate as media agencies: “creators become media agencies, media companies within their own right” (39:16). This evolution is driven by the need for diversification and resilience in an environment where dependence on any single platform is risky.

Conclusion

The July 29, 2025 episode of The Digiday Podcast offers a thorough exploration of the intersecting forces shaping the modern digital economy. From the politically charged Paramount and Skydance merger to the minimal regulatory stance on AI, and the transformative shifts within the creator economy, the discussion underscores a period of significant change and uncertainty. As creators adapt to evolving platforms and technological advancements, the future promises both challenges and opportunities in the quest for sustainable and impactful media presence.

Notable Quotes:

• Tim Peterson (03:36): “So it feels very dystopian and autocratic in a way that so much feels these days.”
• Kameka McCoy (07:19): “The administration wants to export American AI and for us to win the AI arms race.”
• Crystal Scanlon (20:00): “2025 is the year of professionalization [for the Creator economy].”
• Alexander Lee (25:02): “esports … advertisers are just not interested in anymore.”
• Kameka McCoy (39:16): “creators become media agencies, media companies within their own right.”