U.S. Media & Entertainment "Takeaways from AI in EntertAInment summit" Hodulik

Research evidence excerpt

U.S. Media & Entertainment "Takeaways from AI in EntertAInment summit" Hodulik

Efficiency. Speakers pointed to falling costs with animation in particular seeing a Associate Analyst

pk.keller@ubs.com step function change. Savings for other content types, including live action, are

+1-212-713 4320

likely to come over time. The range of estimates on savings varied (as much as a

ten fold decrease on animation or more conservative estimates for 30-40%

savings on hybrid films).

Studio/creator adoption. Most studios are already using AI in various areas

today and companies are expected to increasingly allow generative AI companies

to experiment with established IP. This includes collaboration between traditional

studios/brands and emerging AI studios/models that fit AI into the existing

production process (substantial traction here cited in the past few months). That

said, the barriers to entry for studio quality output is falling, potentially

fragmenting the long-form content market. Hollywood labels historically drove

cultural relevance and taste but this is increasingly shifting to independent

creators/individuals.

User engagement. Speakers suggested engagement has already shifted to UGC

and gaming at the expense of studio/film. Studios/streaming services are

increasingly incorporating short-form content, vertical videos and gaming in their

apps as a result. However, it remains unclear whether consumers—conditioned to

view these platforms as long-form destinations—will adopt them with a short-

form mindset, given embedded brand perceptions and how they categorize and

engage with different apps. The velocity of content being uploaded to platforms is

exceeding the ability for curation/policing, suggesting brand and guardrails will

still be important.

AI in Music