Will AI Replace Hollywood AND Influencers? + AI Batman!
"No moat" in gen AI + BLACKPINK launches a game
The Agenda:
I have a lot of things going on right now, including building financial projections for my startup, so a shorter newsletter today. Meantime, enjoy!
Opinion
Will AI replace Hollywood AND influencers? [Hollywood, AI]
Streaming results so far. [Hollywood, Streaming]
“No moat” in gen AI (I told you so!). [AI]
AI Batman! [AI, IP]
BLACKPINK: The Game. [South Korea, Gaming, Music]
Monday Motivation
“Feel the fear and do it anyway.” (Susan Jeffers)
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Opinion
Hollywood
Will AI replace Hollywood AND influencers? [Hollywood, AI]
Currently in the US entertainment industry, there is an ongoing writers strike - you can read about what the issues are dividing writers and Hollywood companies here courtesy of The Hollywood Reporter. Surprise surprise, two of the contentious issues are the economics of streaming and AI.
As both a business owner and a creative, I have been in the shoes of both sides of the divide, so I’ll argue from both sides.
First and foremost, everything I produce is done by me and me alone, supported by labor-saving technology. I write the entire script for Cross Platform and Business Samurai - jokes, quips, plot points, character moments - completely by myself, and I turn over every week for CP and about every two weeks for BS. I use software to ink, letter and generate backgrounds for BS, meaning I can now do work that in previous decades was done by a whole team of people. The net result is that my IP is released quicker into a highly competitive market, for your free consumption, and allows me to quickly continue refining my IP based on how the market reacts. So, you, the consumer, benefit. Ah, Borkian consumer welfare, originally from my alma mater. @_@ Make of that what you will, people have different opinions. Anyway, I can see the appeal of reducing costs, via technology, in the culture industry.
On the other hand, one reason why I’ve taken distribution into my own hands (newsletter, app) is because, in the streaming age, the current scheme pays lower residuals from successful IPs to creatives - not pointing fingers here, that’s just how things ended up. If a creative contributed to the creation of a massive hit, shouldn’t they be fairly compensated? What about the compensation of the executives who run the streamers?
The two paragraphs above, in my view, are metaphors for the basic arguments from both sides of the divide. Obviously, the devil is in the details, so I encourage you to read more and form your own opinion.
There’s a larger discussion to be had about emergent technology and human society as a whole, which I will talk about next week, but I want to finish this section with one more thing: watch this video. The same potential technological disruption that streamers and creatives face are the same that social media and creators face. Why pay out creator fees if you can just save money and AI-generate influencers? Aren’t some influencers, with their filters and photoshopping, just a few steps away from being completely AI-generated anyway? Remember that France is even thinking about requiring influencers to publicly disclose such visual “adjustments”.
Streaming results so far. [Hollywood, Streaming]
The streaming industry continues to be difficult. Paramount is facing challenges, and one analyst is even calling for the company to ditch its streaming service. Meanwhile, Warner Bros. Discovery did report quarterly profitability on an EBITDA basis, but revenue weakened (in line with analyst estimates, to be fair). So, it’s no picnic for the streaming corporations either.
AI
“No moat” in gen AI (I told you so!). [AI]
Literally last week I was contemplating whether or not the gen AI industry would be profitable, and lo and behold, Semianalysis posted a leaked doc from Google about the difficult business side of gen AI, which The Information and others also shared.
AI Batman! [AI, IP]
Given all the research I do on YouTube, it was perhaps inevitable that the algorithm would recommend AI Batman to me. Thank you, I needed the motivation. AI Batman motivates me before I work out. AI Batman taught me to use my money (what money?) to make a positive impact on the world. AI Batman advises me on how to deal with toxic people and also reminds me not care what other people think.
Same Bat-time, same Bat-YouTube channel, getting Bat-motivated by a Bat-influencer! Thank you, AI Batman!
Real talk though, these videos encapsulate many of the benefits and challenges we discuss in Cross Platform. One main issue is that the AI voice sounds quite a bit like the late, great Kevin Conroy, who voiced Batman in the classic Batman: The Animated Series. I wonder what the estate of Mr. Conroy thinks, let alone DC/Warner Bros.
I do think Warner Bros. Discovery has a new way to monetize one of its most popular IP. I would totally buy Batman motivation! Maybe it might help sustain the EBITDA recovery?
South Korea
BLACKPINK: The Game. [South Korea, Gaming, Music]
I’ve previously brought up attempts of South Korean musicians to go cross-platform with gaming, and here’s a big one. I haven’t seen any reported results yet… will it work? Hopefully! The signs look good with over one million pre-registrations. Let’s ask around and see what other people think:
Monday Motivation
“Feel the fear and do it anyway.” (Susan Jeffers)
Many moons ago, when I was an equity research analyst, my Bloomberg terminal greeted me every heart-palpitatingly stressful morning with a quote to get me motivated. I suppose that’s where I got the idea for Monday Motivation.
A decade on, and I only remember a few quotes. This one, by Susan Jeffers, really stuck with me:
“Feel the fear and do it anyway.”
We’re all scared. Some of us are just better at hiding our fear than others. The greatest things we can achieve involve some massive risk, that’s why so many people shy away from what they really want. Just be brave a little longer.
GO FOR IT! REACH YOUR GOAL!