Despite the potential of AI, industry experts like Michael Ovitz suggest that traditional TV and movie companies may be slow to adopt these technologies. This hesitancy is partly due to the profitability of young streaming platforms from legacy TV companies, which may resist drastic changes in content production. Nonetheless, analysts warn that complacency is risky, especially given past industry disruptions by companies like Netflix. The low cost of AI platforms could encourage mid-level and innovative companies to experiment with AI-driven content creation.
Key takeaways:
- China-based DeepSeek has significantly reduced the cost of starting an AI-enabled platform to around $6 million, compared to $100 million for similar U.S. platforms.
- The news has caused a major impact on technology companies, especially chip-makers, with stock prices dropping by 20% or more, while legacy media companies' shares remain largely unaffected.
- AI is expected to have a long-term impact on the entertainment industry, particularly in content production, trend identification, and data analysis from social media.
- Despite the potential of AI, TV/movie companies are slow to adopt the technology, partly due to the profitability of young streaming platforms from legacy TV companies.