Advertising & Media

Xbox Launches Film Studio XP for Advertising and Sponsorship

Xbox has created film studio XP under Kayleen Walters and formalized sponsorship as a key focus. Meta charges for external links beyond two per post.

3 min read

Xbox Wants What TV Has (As In, Ads); Meta’s Link Toll
Xbox Wants What TV Has (As In, Ads); Meta’s Link TollAI-generated

Xbox has created a new division, XP, for films and series, and has officially named sponsorship and brand partnerships a key monetization area. Xbox CEO Asha Sharma told employees about it on Thursday in an internal memo. The name XP is a nod to gaming slang — "experience points."

The division is headed by Kayleen Walters, head of Xbox-owned studio Mojang Studios. Maria Angelidou-Smith will take over as CEO of Minecraft and Mojang.

The news comes against the backdrop of recent layoffs: last month Halo Studios lost more than 260 positions — another wave of cuts following the Activision Blizzard acquisition.

Why Does a Gaming Brand Need TV Content?

The logic is obvious. Gamers have historically been hostile to advertising, while TV viewers are used to it and generally tolerate it. Advertising in the TV environment is a high-margin revenue stream: brands pay substantial sums for access to an engaged audience. How Xbox will share ad revenue with content partners remains unclear.

Xbox's advertising ambitions have long been discussed in the industry. Now sponsorship and partnerships have been formalized as a "key area of investment" for the first time.

What Meta Charges for External Links

In parallel, Meta is testing a global subscription bundle, Meta One, and monetizing what used to be free. Business pages without a subscription are required to pay if they want to include more than two external links in posts. Pages that exceed the limit see their URLs rendered as plain, non-clickable text.

According to Press Gazette, news publishers' pages are exempt from the rule — which raises a separate problem: who decides, and how, who counts as a news publisher and who doesn't.

Meta is tightening the rule: it now also applies to comments, which were previously unaffected. The exceptions are telling:

  • links in ads;
  • Meta affiliate links;
  • links to Meta's own services — WhatsApp and Threads.

Why Are Independent Agencies Merging?

Meanwhile, the agency market is consolidating. Some holding companies are already embarrassed by the very word "holding": on the first investor call last year, WPP CEO Cindy Rose said the company is "no longer a holding company." Horizon Media Holdings President Bob Lord is openly skeptical of the holding model.

Mid-sized independent agencies are pursuing mergers into hybrid structures. Ad Age cites examples:

  • Wpromote acquired Giant Spoon;
  • Chemistry acquired Colossus;
  • Acadia acquired Crush.

At the top of the market, the deals are bigger: alongside the Omnicom–IPG merger — the Horizon Media and Havas joint venture (Horizon Global) launched last year, and the first full year of commerce agency Mars United under the Publicis flag.

"[Independent agencies] are going to find it harder to compete," Mars CEO Rob Rivenburgh told AdExchanger in an interview. He led Mars for 23 years before the deal and stayed at Publicis for about a year. According to him, fewer and fewer marketers are willing to include independent agencies in their partner pool. The takeaway for the indie market is harsh: staying independent means growing.

What Else Happened?

  • Apple fixed The Trade Desk's Safari advertising issue, but the status quo hasn't returned. [Adweek]
  • A freelance designer who created the M logo for Meta's AI assistant Muse is getting attacked — ironically, on Threads. [Wired]
  • Agencies are adopting agentic media models, but clients fear AI agents spinning out of control. [Digiday]
  • Meta is testing a video-centric Facebook interface in India. [TechCrunch]
  • USA Today is suing OpenAI for copyright infringement. [Reuters]
  • Cable TV is grappling with the regional sports networks problem. [CFX]

Personnel Moves

  • Apple replaced longtime M&A chief Adrian Perica with his deputy Steve Smith; Carson Oliver was promoted to vice president of the App Store. [Bloomberg]
  • Skydance announced appointments: Jay Askinasi as head of ad sales, David Decker as head of content sales, Ray Hopkins as head of distribution. [Variety]
  • Infra TV, the parent company of adtech platform Tatari, appointed Teg Grenager SVP of product.
  • Smartly brought in Netflix veteran Kelly Uphoff as chief technology officer.
  • McCann CEO Tyler Turnbull will lead WPP Creative as global CEO. [Ad Age]

Original: wired.com

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