The deluge of artificial intelligence and "AI-powered" technology is affecting the traditional film and TV industry, but not in the way you might think. And while technology in general is unlocking a whole new world of possibilities for creators, it's bringing other downsides.
Speaking to the Rally Innovation conference in Indianapolis, IN, producer and author Dete Meserve laid out a stark reality about the state of the film and TV industry, but also offered an optimistic outlook.
"If I were speaking to you five years ago, I would've said welcome to the exciting world of the entertainment industry," Meserve told the audience. "But in some senses the entertainment industry is flatlining right now."
The Current State Of The Film and TV Industry
To consumers, it may seem like there's a never-ending supply of quality entertainment options hitting streaming services and theaters alike. But the reality, according to Meserve, is quite different. Because the biggest names in entertainment are more concerned with shareholder returns, she says, the industry as a whole is suffering.
"The middle layer of people are losing," Meserve says. "The earnings for feature film writers are dropping 20 percent. Even people behind big hits are having trouble getting traction with new material. Production in Los Angeles is down by 40 percent. There have been so many firings and layoffs at every outlet."
And the typical sure-fire wins of existing IP aren't necessarily hitting home runs, either. Because several big name films have lost hundreds of millions of dollars, many of the studios with the cash to take big swings simply aren't taking them anymore. "The fear of risk is dooming a lot of shows to failure," Meserve says. "College students are being told to go into entertainment management. That’s not what you want to be hearing about an industry as vibrant as the entertainment industry."
And yet, the creator economy is booming and people are consuming more content than ever before. And even for all its misgivings, traditional media still has incredible reach. Meserve notes that a children's show she's currently working on is estimated to reach 88 million kids via the show, an additional three to five million through affiliated games, and another two or so million through an education platform — and that's all just in the United States — in the first two months.
How Remote Work Changed The Traditional Film And TV Industry
The recent Hollywood strikes were about a lot of things, but rights ownership and AI were at the forefront. Concerns were less about what current technologies may be doing to the film and TV industry and more about what studios may try to use future technologies to reduce costs.
In other words, Hollywood's current low point has more to do with a difficult covid rebound, skittish major studios, and (potentially outdated) unit economics than anything to do with artificial intelligence. Meserve says that advancements in things like remote work has unlocked a wealth of options that are good for productions both in terms of saving costs and employing the right people in the right locations. In the old industry, Meserve says, you kind of had to be in Los Angeles to book consistent work. "Now, I can hire the best talent wherever they are."
The advances in remote work technology mean people can work together and review materials without ever being in the same room. "Now we’re able to work more seamlessly across many time zones," Meserve says. "The show I’m working on now is pretty much in production in some time zone 24/7. Everything can keep going around the clock."
Of course, there's a downside to that, too. When people aren't all in the same room, it can sometimes be hard to get across a thought. Or worse, people who have no real stake in the production suddenly chime in and now you've got dozens of notes, some of which matter, and many of which don't.
In fact, there's an industry phrase for the negative effect of letting too many notes stifle creativity. They call it "working towards the note," or intentionally changing a production, often for the less interesting, in order to avoid potentially frustrating notes from people who aren't that connected to the project, but still have a lot of sway in whether or not it gets made. (Yes, even the entertainment industry deals with overbearing and out-of-touch superiors).
How AI Is Affecting The Traditional Film and TV Industry
So if AI hasn't really infiltrated the traditional industry as much, and if labor union agreements helped protect workers against misuses of artificial intelligence, how exactly has AI impacted the industry?
"The industry is very conservative about the use of AI," Meserve says. Not for ethical reasons, though. For legal ones. "The problem is, with a few exceptions like Adobe, most of [generative AI's output] is uncertain and we don’t know the origin and whether or not it may be copyrighted material. That risk is way too high." Plus, if a production uses AI to create music, for instance, that's actually a lost revenue stream — often in the range of seven figures (minimum). Productions can't sell the publishing rights to artificially generated music because it has no value.
However, some generative AI tools do allow elements of a production to workshop and "stand up" ideas faster than before. Not necessarily as a tool for inspiration — which Meserve says is the last thing professional creatives need — but as a way to create quicker references. And then there are truly powerful pieces of software, like Real Engine 5, which harnesses some artificial and machine learning technology, to create fantastic environments quickly to better prepare for projects.
But as of right now? AI the way most normal consumers see it just isn't very useful to the film and TV industry.
What The Traditional Film and TV Industry Does Want From AI
Meserve is unequivocal in saying that professionals do not need "help" with the creative side. "Talk to anybody who is involved with a production right now and ask them where they need help," she says. "They’re not going to say to you, 'I need help coming up with creative ideas.' What we need are the tools to take away the drudgery of work. We don’t need AI writing lyrics to a song, or a poem, or coming up with a story idea. What we’d really like is something AI could actually help us with. My email goes all day long. I wish AI would say, 'This is what you need to pay attention to.' AI has not yet figured out how to make my life better."
At the same time, Meserve acknowledges that there are creative elements of AI that will take jobs from the industry. Even if labor unions have fought for, and in many cases won, protections from that. "There is a human factor," Meserve says. "I cannot ask a human artist to toil away designing characters and backgrounds and props and send that person an AI-generated image as a reference. I don’t think that’s being a good human leader. Many of those jobs will go away, but I don’t need to be a part of that right now."
Likewise, Meserve is a published author. She sees value in being able to fact-check certain elements of her work for believability and accuracy. Unfortunately, generative AI still hallucinates so much that it's hard to know if it gets the nuances of a question right. And in many cases, you're just doing double the work: once to ask AI, and once to go looking yourself.
So ultimately, the traditional industry has been completely reshaped by technological advances of the past five years — just maybe not the one every company wants to be talking about.