That is an accurate assessment. What you are describing is being called personalized entertainment.
My view is that popularity is going to be determined by what goes viral. You will generate a film, if you like it, share it out. If a lot find the same, they will share until someone popular picks it up and sends it viral.
And because of that, quality will be high, because new ‘experts’ will arise that will try to create this viral AI generated stories.
Prompting and curating for a certain audience will likely be a job, aa some people will have a greater creativity and skill in generating attractive content