ADWEEK Creativity Advantage: As Holdcos Consolidate Production, Independent Studios Are Under Threat

In late September in East London, WPP unveiled its new flagship production hub. The 34,000-square-foot Devon’s Point follows the launch of WPP Production in February, and brings together AI-powered, virtual, and human-led production capabilities under one roof. It’s just the first of several such hubs the holding company plans to open around the world. Devon’s Point is the latest sign that holdcos are investing more in production capabilities as clients face demands to create more relevant content faster than ever, or risk “falling into the ‘sea of sameness,’” as Richard Glasson, global CEO of WPP Production, said at the hub’s launch event. Rival Omnicom consolidated its production capabilities under Omnicom Production in 2024, and later folded in IPG’s production studios after its acquisition in 2025. Publicis Groupe also has a centralized division called Publicis Production. The shift goes beyond the biggest holding companies. ADWEEK recently toured Girl&Bear, independent agency VCCP’s production studio, which expanded to the U.S. last year. It offers clients post-production, sound, and content creation services in-house. Production, traditionally outsourced to external studios in a bidding process, is becoming a key selling point for holding companies and agencies as AI lowers the barriers to content creation, creative fees get squeezed, and clients demand more content across more channels. In a changing market where many clients are in-housing their own capabilities and consolidating with fewer partners, agencies see production as a potential new revenue stream. This shifting dynamic is reigniting a long-simmering debate about who should control creative production. WPP Production recently changed its guidance on navigating the bidding process—typically carried out as a “triple bid” between three competing production shops—and instead asked staff to encourage clients to send all production work to WPP. The episode echoes a conflict that began a decade ago, when the Justice Department’s antitrust division investigated whether agencies manipulated the bidding process to drive production work toward their in-house divisions. The DOJ cleared all five companies subpoenaed—WPP, IPG, Omnicom, Publicis, and MDC Partners—in 2018. All of this raises the stakes for independent production companies and the talent they employ, which are already grappling with shrinking budgets, the rise of AI, and brands doing more production in-house. In the short term: Consolidation accelerates Over the next year, holding companies are likely to double down on selling their centralized production services to clients. For large brands under pressure to produce more content, adopt AI, and cut costs, an integrated offering from a holdco could be an attractive proposition. As a result, the debate over in-housing, particularly when it comes to triple bidding, will intensify. As independent production companies increasingly compete with agency-owned studios, some may get bought by the big players. There’s already a precedent for this: Omnicom acquired post-production house Coffee & TV in 2024. Other studios may shut down altogether, like London-based post-production house No. 8 earlier this year, or The Mill, which closed its doors in 2025 after facing several business challenges in a changing landscape. Freelancers may feel the effects of these shifts first. With fewer independent players around to assemble crews, and in-house teams leaning on their own staff or AI tools, hiring could slow, and budgets could shrink. Emerging talent could also find fewer but different routes into production, since independent studios have traditionally been where many entry-level workers learn their craft. In the long term: The gap widens A bigger question remains about how consolidated production will affect creative output. Glasson said WPP Production wants to help clients stand out as AI lowers the barriers to content creation. But a large division built for efficiency and speed may have trouble avoiding that very trap. As for the independent production companies, those that survive could become even more attractive to brands and talent alike because of their emphasis on human craft. Independent production companies have long been known to discover and nurture top talent like directors. While those opportunities may be fewer and farther between, top creatives will still seek them out, which could help the best independent studios thrive. The fight over who controls production is also cyclical, as the DOJ investigation a decade ago shows. Competitive bidding may eventually give way to a different industry standard, such as a preferred supplier model, where a business draws directly from a pre-vetted group of vendors. And there will still be a place in the market for independents. Whoever controls the future of production, holding companies and independents alike will need to consider how to develop the next generation of creative talent as the landscape evolves. AI tools aside, the future of commercial creativity still requires finding and training the people who will make the best work for clients.

ADWEEK Advantage

ADWEEK Creativity Advantage: As Holdcos Consolidate Production, Independent Studios Are Under Threat

Holdcos see production as a new revenue stream, raising questions about who controls it and where the next generation learns the craft

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Brittaney Kiefer

Creativity

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