Tech companies gain more influence in Hollywood as AI tools spread

In short: Big tech firms are shaping more of Hollywood’s business, and AI tools are being used on more productions, but traditional studios have not been fully replaced.

What's going on

Technology companies like Netflix, Amazon, and Google have moved from being “outside” platforms to becoming buyers, partners, and investors in movies. That affects who pays for films, where people watch them, and how success is measured. Audience data, meaning viewing information (like a store tracking what sells), is now a major source of power.

There are also signs of deeper involvement in production. Netflix reportedly acquired Ben Affleck’s AI production company InterPositive for about $587 million. Lionsgate has partnered with Runway, an AI video tool maker, and Google DeepMind has invested in A24.

AI is already being used during production, especially for visual effects and post-production, which is the work done after filming, like editing and polishing scenes. Netflix has said generative AI, meaning tools that can create images or video from prompts (like giving instructions to a very fast assistant), has been used in workflows on roughly 300 titles. The reported uses tend to be targeted, like planning shots, editing, or dubbing, rather than AI independently making and releasing major films.

What to watch

The big open question is control and consent. Studios are building AI teams while also trying to protect their copyrighted material from being used without permission. Labor disputes also continue, since worries about AI and job loss were part of the 2023 Hollywood strikes, and issues like pay, credit, and permission are still being argued.

Source: NYTimes