The video world is changing a great deal. This is reflected in the experiences of the Hollywood studios. Not only are their film making divisions losing money, those with traditional broadcast networks are taking huge hits, having to write the values down as Wall Street realizes they are worthless properties.
Streaming, for the most part, was a failure for these entities. Only Disney is holding its own, and it has to invest tens of billions. The field is dominated by YouTube and Netflix. This has seriously damaged the profits of these legacy companies.
While many point to a number of factors, the overwhelming one is technology.
In this article we are going to focus upon the next trend that is going to stick the nail in the coffin of these companies. At the same time, we are going to see a radical transition in the video world.
Web 3.0 And The Changing Nature Of Video
The first wave of disruption came in the form of distribution. When the Internet rolled around, people were free to distribute content as they saw fit. The challenge here, and the benefit of the movie studios, the content created, especially video, was substandard.
Over the last couple decades, this changed. Some of the channels on YouTube are of sufficient quality to warrent 10-15 minutes of one's time. When we look at the distribution of eyeballs, this adds up.
That said, we are still in a produce ones, have many view. In other words, the video is the same for everyone. While this was (and still is) the norm, that could be changing. Here is where entities such as Hollywood are doomed.
Technology is, once again, at the forefront of this. We are seeing the capabilities of generative AI growing by the month. Video is still lagging but it is only a matter of time before the progress curve for images is replicated.
Basically, not only has the cost to distribute plummeted but so is the creation. This results in less money going around, spread over more competitors. Profits are contracted causing the dilemma for the major players.
It is disruption at its finest.
The moat on content creation is the final straw.
Source
Invisible Universe
There is a company that was started in 2020 that is emphasizes what is taking place.
The struggles of Pixar are well chronicled. Again, the moat the company had was eradicated. Invisible Universe is taking it one step further.
One can make the case that Hollywood studios are tone deaf. This is a fatal flaw as this company is showing.
Due to the power of generative AI, video production is being turned on its head. Instead of creating something and distributing it to the masses, after testing audience responses, the viewers are included in the process.
By using highly iterative content development process and continuously engaging with its fan base and quickly turning new content. The viewers of the content have a hand in the storyline along with the characters. It is essentially a hive mind for video creation.
This is, naturally, a less risky proposition due to the fact that we are looking at a built in market before the video is even released.
Another change is the distribution channel. This company goes through the traditional social media platforms. Here is where the industry is seeing a shift. Just like news, people are moving away from the traditional channels to find what they seek. entertainment is no different.
This means the company is really a marketing firm. It seeks to build franchises and then use that as the profit center. The idea is that the money is leaving video as the barriers are broken down.
Here is where we see technology demonetizing things.
Web 3.0: A New Business Model
Of course, the exception I take with this is the traditional social media focus. While it makes sense, this overlooks the monetization factor.
Web 3.0 could ultimately offer this.
Tokenization is a powerful tool when constructed properly. This firm, due to its intention of building its own ecosystem, could simply tokenize. This means the value of the entire property could be captured as the network effects take place.
Pushing the content on social media could be done for brand awareness. However, the business model could be altered.
The other factor in this could be the eventual spreading of Web 3.0. If the next generation of the Internet starts to emerge, the power of traditional social media companies is likely to wane. They are no different than major Hollywood studios. A few decades back, few would have foreseen their demise. Heck, even today, many still deny it.
Eventually, we are going to see video that is generated by individuals and shared out. This means that even the model of Invisible Universe could be short lived. Again, this is how advancing technology works.
At the core of that evolution will be tokenization. Here is where platforms become even more important. When networks are abundant, it is the eyeballs that matter. Where is the attention.
Being tied to something much bigger is crucial. This means a platform having as much tied to it as possible. That way the built in population is there ready to be served.
They seek what they need. If it is not there, they will go elsewhere. It is really that simple. The platforms that excel are not going to be providing one specialized application. Instead, it is going to be the everything idea.
Web 3.0 platforms can offer this. It only requires the development.
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The only thing Hollywood has going for them right now is their IPs. Popular characters like Spiderman, Deadpool, and Wolverine can still pull in audiences, but their known stars are growing old, and the new ones are having a hard time making a name for themselves because of all the content available. Hollywood isn't really doing themselves any favor by putting out subpar movies that are pandering to specific demographics and agendas. They should go back to their roots and release good movies if they want to stay in the game.
This Invisible Universe and other AI video companies just need to get a hold of popular IPs to get support. If they can put out good movies/shows quickly, then Hollywood is in big trouble.
I think it was a major strategic error when they decided to take on Netflix. They blew up their model that was profitable.
Their libraries are worth a tidy sum. They should have keep leasing it out to Netflix and collecting revenues. Instead, they sunk billions into trying to compete, only to find out the market couldnt handle it.
As platforms evolve with tokenization and user engagement, the traditional entertainment industry is set for a major transformation, where attention and adaptability will define success.
It is certain that web 3.0 and artificial intelligence will have a transformative impact on the entertainment industry. It will be inevitable that the big production houses will adapt to the challenge and generate competitive and higher quality content. Also, the impact of tokenization will be interesting to see how things develop.
I am wondering what will happen to the video automation scene when Sora comes out from OpenAI; it will be very interesting to see.
Sora or others.
Ultimately, my guess is video will be driven by natural language with someone simply prompting a film. That will mean the need for Hollywood studios are gone.
How long will this take? I give it a couple years.
One could imagine cutting cost in filming and cutting. Generate the landscape of the scene by AI and doing main shoot with real actors . Might to baby as feasible idee
But why use actors ? It's getting close to the point that AI can do their job. It'll cost money, but probably not as much as an A or B list actor's salary, and without worrying about them having an "off" day, demanding script changes, being prima-donna's, or having private lives so messed up that they become newsworthy in all the wrong ways. It'll save money on costuming and makeup as well.
I agree with you.
We are going to see "AI stars". There will be no need for actors in video.
The only roles will be on stage. Live performances will still have a place, in all genres.
I hope AI Director and AI Screenwriter and other AI author will put more focus on the quality of the story then with twists and such.
#Netflix should be expected to ready for this #data wise.
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❤️ @mysteriousroad suggested sagarkothari88 to upvote your post ❤️
With your good ideas everything can be reality, make it happen decrease the costs for shooting. Produce the scene scenery by AI and achieve the main shooting with real actors. It could be a feasible idea because your ideas are great, like all the ones you present us in Hive.
Great