AI and the Future of Hollywood

This podcast episode explores the impact of changing distribution models on the economics of businesses in the music and Hollywood industries. It discusses how the transition to streaming-based distribution and the abundance of content on the internet have eliminated distribution scarcity, catching many CEOs off guard. The chapter also examines the concept of fungibility in the streaming music and video industries, highlighting the importance of content and recommendation algorithms. It delves into the evolution of music streaming services and the concept of catalog, emphasizing that a comprehensive catalog is not necessary for a successful streaming service. The episode explores the potential impact of AI on creative content, the dynamics of AI in different fields, the impact of AI on employment, and the potential of technology in the creative space. It also discusses the impact of technology on job creation, the potential of AI in enhancing creativity, and the importance of cultural diversity in the entertainment industry. Takeaways • The shift to streaming-based distribution and the abundance of content on the internet have eliminated distribution scarcity, catching many CEOs off guard. • The economics of the music industry have shifted, with over 70% of top streamers being independent artists. • The music industry focuses on content changes, while Hollywood primarily enters the distribution business. • Fungibility, the ease of substitution, plays a significant role in determining the economic value of products or assets in the streaming music and video businesses. • AI can contribute to specific components of creative content, such as generating beats in rap music or assisting in the creation of scenes and dialogues. • The impact of AI on employment in creative professions is uncertain, with both positive and negative implications. • Computers have led to the creation of new jobs in areas like graphics design and product management in the creative space. • AI and technology have the potential to enhance creativity and improve the quality and quantity of creative work in the entertainment industry. • Hollywood culture, specific to American society, has had a significant impact on the global entertainment industry. • American entertainment has played a significant role in inspiring and providing hope to individuals living under oppressive regimes, showcasing the transformative power of movies and music. • Comedians and entertainers have the ability to challenge societal norms and speak truths that others may not, fostering cultural progress and innovation. • The democratization of media creation, enabled by technology, empowers individuals to express themselves, fostering a vibrant creative environment and a diverse range of ideas. • AI and blockchain have the potential to revolutionize the entertainment industry by improving royalty systems, enhancing attribution, and creating new opportunities for artists. • The prevalence of franchise movies and remakes in Hollywood indicates a cultural stagnation and risk aversion in the industry. • Cultural diversity and geographic diversity are essential for fostering creativity and innovation in the entertainment industry, allowing for the representation of different perspectives and ideas. • Visual storytelling, through movies and TV shows, can offer a deeper understanding of complex global issues and foster mutual understanding among cultures. • Decentralization in the entertainment industry empowers filmmakers globally to tell compelling stories and contribute to a richer understanding of global issues. • The future of the entertainment industry relies on embracing diverse and culturally relevant content, decentralization, and amplifying different perspectives and ideas.