Billboard sign in stadium

2026 M&E trends: simplicity, authenticity, and the rise of experiences

The industry enters 2026 balancing familiar pressures and new possibilities.


In brief

  • Streaming and linear converge as consumers demand seamless, simplified experiences.
  • Artificial intelligence accelerates production, but authenticity becomes the industry’s rarest asset.
  • Experiential entertainment shifts from a side business to a strategic priority as demand surges.

As 2026 approaches, the media and entertainment (M&E) industry is navigating two realities. Legacy businesses are bending under structural pressure, while new distribution, technology and experiential models continue to accelerate. Companies are simplifying access, rethinking portfolios, leveraging artificial intelligence (AI), launching live experiences and embracing creator-led ecosystems.

Yet one constant remains: delivering value and genuine connection to consumers who have more choices and are experiencing greater frustration than ever before.

Here are the five trends leaders should watch for in 2026:

 

1. Frictionless entertainment goes mainstream.

 

After years of fragmentation, simplicity is emerging as one of the industry’s most valuable currencies. A growing feature of modern carriage agreements is the full integration of direct-to-consumer (DTC) services directly into the multichannel video programming distributor (MVPD) interface. This evolution signals a shift toward unified aggregation that includes legacy linear channels, streaming apps and premium services delivered through a single, coherent entry point.

 

Consumers are reinforcing this push. According to the EY Decoding the Digital Home 2025 Study, households don’t necessarily want more content, they seek a better mix of live TV, channels and dedicated apps; greater customization; more guidance on underused services and overall simplification.¹ Fragmentation remains a primary pain point, especially for sports fans navigating rising costs and splintered rights.

 

In 2026, the next-generation bundle will continue to take shape. Distributors will pursue deeper integrations of DTC apps to provide subscribers with additional convenience and value, while media companies will rationalize sprawling network portfolios to improve economics and reduce consumer friction. Aggregation is returning, but the questions yet to be answered are: Who will own the customer experience and will these models create sustainable value instead of merely extending legacy economics?

 

Look for industry players to redesign access around utility, transparency and ease. Frictionless experiences across streaming, live events, cruises, theme parks, travel, gaming and sports will increasingly separate leaders from the rest of the field.

 

2. Tech giants crash the Hollywood party in media consolidation 2.0.

 

The next wave of consolidation will differ from the last. Legacy operators are disaggregating declining linear networks from faster-growing streaming, studio and digital-first businesses via SpinCos and RemainCos. These structural shifts allow companies to pursue distinct capital strategies, investment profiles and M&A opportunities tailored to vastly different growth outlooks.

 

Meanwhile, following years of speculation about their strategic intentions in media, the largest digital platforms are now fully engaged in the Hollywood consolidation conversations. They’re competing to secure scarce intellectual property (IP), rationalize a fragmented streaming environment and achieve scale advantages that traditional media players can’t match. Their participation may serve as a catalyst for broader realignment across content libraries, sports rights and distribution systems.

 

However, not every company will find a partner. As always, M&A cycles create winners, while leaving others searching for strategic alternatives. Alliances, commercial partnerships and distribution tie-ups, which have been discussed in the past but are rarely executed, may finally materialize in 2026 as frustrated bidders explore new paths to relevance.

 

For all M&E players, the hurdles remain high. Regulatory uncertainty, timing risks, integration complexity and the real possibility of strategic isolation could sour well-laid plans. But many M&E companies will forge ahead undeterred, laser-focused on cost rationalization, content consolidation and subscriber scale in DTC services. Leaders should prepare for a year defined by structural moves rather than incremental adjustments.

3. AI slop won’t satiate consumers craving authenticity.

Agentic AI systems are expanding rapidly across the media value chain, from automated post-production to multi-format content generation, dubbing and localization, marketing optimization, personalization engines and creative development workflows. Meanwhile, multi-agent ecosystems support more efficient collaboration, versioning and asset governance at a global scale.

The productivity gains are real. For companies under pressure, AI expansion is a compelling prospect. However, this rise coincides with a collapse in trust. A September 2025 Gallup poll shows confidence in news organizations at its lowest level on record (28%), with even lower levels among younger audiences.² Simultaneously, synthetic content, often referred to as “AI slop,” increasingly fills feeds and platforms.

In this environment, authenticity and quality become premium assets. Consumers are signaling they want human-led storytelling, emotional connection and credible reporting. Even as AI-generated videos and short-form formats proliferate, the brands that double down on distinctive editorial judgment, creative identity and clear provenance will stand out.

For 2026, AI’s strategic focus shifts from whether to adopt it to how to apply it responsibly. Media leaders must blend AI-driven efficiencies with human insight, designing operating models that protect trust while accelerating quality, speed and scale. Companies that treat AI as an enabler to customize and orchestrate while keeping what people see and feel recognizably human — authentic faces, genuine stories and shared cultural moments — will be the ones that build deeper trust and stronger brand value.

4. The experience economy explodes.

Experiential businesses have become strong performers in media portfolios. For IP-rich operators, extending franchise ecosystems beyond the screen — through parks, live events, attractions and integrated travel experiences — continues to deliver robust returns. The opening of branded “in real life” location-based entertainment sites by digital-native operators underscores the strategic importance of translating on-screen IP into immersive in-person environments.

Sports and live events remain a central pillar. Private equity firms continue to invest heavily in teams and leagues, fueling upgrades to stadiums and fan experiences. Innovations that blend live events with digital engagement are redefining participation, from creator-led watch parties to personalized real-time offers powered by AI.

However, the challenge for many players is uneven access to capital and IP. Not all media companies can build large-scale experiential assets. Players with strong IP but limited resources have multiple paths into the market — from licensing and joint ventures to pop-ups and digital-first activations.

In 2026, the experiences economy will move from an “adjacent opportunity” to a strategic necessity. Companies that can leverage data, loyalty ecosystems and cross-platform consumer insights will unlock the next frontier of value creation.

5. The creator economy grows up.

The creator economy is transitioning from influencer marketing to full-scale business collaboration. Creators are becoming strategic partners that own IP, build communities and participate more directly in commerce and monetization. For legacy media companies, this shift requires rethinking traditional models of control in favor of co-creation, transparent economics, flexible rights and shared data.

Short-form vertical video remains the industry’s fastest-growing format, driven by the consumer appetite for snackable storytelling.³ Microdramas — scripted, serialized one-to-two-minute videos — now attract tens of millions of viewers and are developing into a viable creative and commercial category.

The intersection of creator ecosystems, AI-based user-generated content and mobile-first distribution will continue to reshape how content is produced and discovered. However, success requires guardrails, such as brand safety, editorial quality, creative integrity and sustainable revenue models.

The winning approach in 2026 will blend platform-native creativity with professional production discipline, enabling creators while elevating brand value.

Honorable mentions

Prediction markets vs. sports betting: The deregulation momentum is pushing prediction markets into the spotlight, even as scandals emerging in major sports highlight the integrity risks tied to gambling. The balance between innovation, competitive purity and consumer protection will be a key storyline in 2026.

The expanding universe of sports: Women’s sports, emerging leagues and global multi-team ownership models will continue to grow in value and visibility in 2026, reshaping rights negotiations and partnership strategies.

The enduring power of podcasts: Podcasts are proving to be far more than a niche engagement play. The global podcast market is surging from $7.7 billion in 2024 to a projected $41.1 billion by 2029, representing a 39.9% compound annual growth rate that reflects the format’s staying power.⁴ Notably, video now drives 30% of US podcast revenue.⁵ With a strong ROI and steady audience growth, podcasts will continue to play a larger role in cross-platform campaigns.


Summary

The M&E industry enters 2026 with clarity on at least one dimension: The old models are not returning. Companies must simplify access, act decisively on their portfolio strategy, deploy AI responsibly, invest in experiences, and cultivate creator ecosystems that reflect how consumers discover and engage with content today.

Amid all the change, the most enduring advantage remains the delivery of distinctive, trusted and meaningful experiences that connect with audiences — on any screen, in any environment and on their terms.

About this article

Authors

Related articles

How digital twin technology and AI can reimagine theme park experiences

Explore how the theme park industry leverages digital twin technology and AI for enhanced guest experiences and operational efficiency. Learn more!

How media and entertainment can transcend AI experimentation for value

Companies that embrace AI and data sooner can break away from rivals in innovation, audience engagement, operational efficiency and more. Learn how.