Let’s admit it—over the past three years, some of the most buzzworthy entertainment hasn’t come from traditional Hollywood blockbusters, but from gaming adaptations and transmedia storytelling. 

Games have now surpassed film, music, and publishing combined in market size and it’s clear: interactive storytelling has become king. 

To dissect this further, Mishka Katkoff sat down with the “OG of IPs and Transmedia” Peter Levin, to discuss the state of the industry, the role of gaming, and where things are headed. 

Levin, who played a key role in shaping Lionsgate’s interactive ventures, provides insights on why legacy media is paying close attention to the gaming industry, as streaming and gaming continue to converge.

Dive deeper into this discussion by watching or listening to the full podcast on your favorite platforms via the links below.

Passion vs. Profits: The Key to Transmedia Success and Failure

When transmedia projects fall apart, it’s often due to one core issue: misaligned priorities. Chasing short-term financial wins can doom a project from the start.

 “In years past, these types of partnerships suffered from paralysis from analysis,” Levin explained. Too often, companies focus on minimum guarantees and squeezing every dollar out of the IP, rather than investing in a long-term creative vision.

On the flip side, Peter emphasized that successful transmedia adaptations often have passionate, creative teams behind them—people who are fans first and creators second:

“One of the key reasons something becomes a hit is because the people working on the adaptation are true fans and really understand the intellectual property of that game”.

It's no coincidence that The Last of Us and The Witcher hit it big. The creators behind them had a deep respect and love for the source material.

But even passion can’t save everything. Levin is realistic about the process and adds that there will always be misses in the gaming-to-film pipeline. What’s changed, though, is the dynamic. 

Historically, gaming IP was treated as a secondary asset, with film and TV as the crown jewels. But now, gaming is the main event, driving the lion’s share of the revenue, as we saw with Hogwarts Legacy, which grossed $800 million in its first week.

Legacy media companies are catching on. Levin noted that studios like Warner Bros. and Disney are starting to have “aha” moments as they realize the need to integrate interactive experiences, like gaming, into their broader business strategies. In the past, these studios treated gaming as a secondary product, often licensing their IPs to third parties. Now they realize that “they’re leaving billions on the table” by not directly engaging with the gaming audience themselves.

The Risks of Transmedia

Obviously, not every game needs to jump into a new medium, and the risks can be significant. 

 “If it doesn’t feel right chemically, you shouldn’t do it…You have to ask yourself—if this thing doesn’t work, will the core audience forgive us?”

While expanding into TV or film can seem like a no-brainer for a successful IP, it’s not always worth the gamble. An unsuccessful adaptation can tarnish the original brand, driving away the fanbase that made the game successful in the first place. Levin stressed that companies need to run the numbers and carefully evaluate whether the rewards outweigh the risks:

“If the adaptation doesn’t live up to the standards set by the original game, it could lead to long-term damage to the brand’s reputation”

It’s about playing the long game. Rushed, poorly executed transmedia projects often feel forced, alienating both new audiences and die-hard fans. Instead, the focus should be on creating experiences that feel authentic to the IP and the audience. 

This isn’t just about chasing the biggest, hottest IP: If you’re not going to have a partner on the other side that wants to be a partner, not just a licensor, it’s not going to work. This misalignment often leads to half-baked adaptations that fail to capture the essence of the original game.

On The Future Gaming Trends

When asked about future trends in gaming, Levin brought up several areas of excitement. 

Emerging markets, particularly in regions like the Middle East and Africa, are on his radar. “Expanding geographies that aren’t close to maturing is something that we spend a lot of time looking at,” Levin shared. These regions, with their growing populations and increasing access to digital platforms, present a significant opportunity for gaming to thrive.

Levin highlighted the growing opportunities in indie games, driven by developers exploring new business models. The gaming market is now big enough for both AA titles and innovative indie projects to succeed. This is fueled by changing demographics, especially the surge in female gamers, who are set to outnumber males on mobile platforms—particularly in emerging markets. For investors like Levin, keeping an eye on these shifts is key to spotting the next big wins in gaming.

“It’s nuts that they don’t have a voice”

During the conversation, Levin made an eye-opening point about the role of carriers and telcos in the gaming ecosystem.

He observed how, despite 60 to 65% of all carrier revenue coming from gaming consumption, many of these companies have no direct relationship with gamers. Telcos, traditionally the pipes through which content flows, have turned into a "big, fat, dumb pipe," allowing third parties like iOS and Android to dominate the space. Levin believes that’s about to change.

He predicts that, particularly in emerging markets like the Middle East, North Africa, and the Indian subcontinent, telcos will begin investing capital directly into gaming ventures, perhaps even creating exclusive content for their platforms:

“You could see them ingesting capital directly into some of these games businesses and creating exclusive content that would be featured on their hardware. They could be bundled onto the hardware”

As streaming services like Netflix have already begun entering the gaming space, Levin suggests telcos will likely follow suit, creating a more direct relationship with the consumer and gaining a seat at the gaming table. 

Transmedia is the Future, and It’s Growing

As we see the convergence of games, films, and other media, it’s clear that gaming is not only here to stay but is becoming the dominant force in global entertainment. Whether it’s through transmedia storytelling, carrier investment, or indie game development, the future is expansive. Peter Levin’s insights reveal that we’re only scratching the surface of what’s possible in this new era of gaming and media collaboration.

Levin predicts that more industries beyond traditional media will enter the fray. Whether it’s sports leagues like the NFL or NBA, or even adjacent industries like telcos, everyone wants to be part of the interactive entertainment ecosystem. They’re not content to simply license their IPs anymore—they want to be part of the action, creating immersive experiences for their fans.