AI in Hollywood: Studios Cautious on Deals

Movie Studios Cautious About AI Partnerships

Newspaper publishers and record labels have embraced [[licensing deals]] with tech companies, but movie studios are taking a slower approach with AI. OpenAI, the company behind ChatGPT and the video generation tool Sora, has been talking to major studios like Disney, Universal Pictures, and Warner Bros. Discovery about the potential of AI in filmmaking.

Studios’ Concerns About Data and Labor Unions

These talks haven’t led to any deals yet. Studios are hesitant because of data privacy concerns and the potential impact on labor unions. The use of AI was a major issue during the 2023 Hollywood strikes, and actors and writers continue to push for regulations on how AI uses their work.

OpenAI’s Sora and Hollywood

OpenAI introduced Sora in early 2024 as a tool for generating realistic videos from text. OpenAI executives, including CEO Sam Altman, visited Hollywood to demonstrate the technology. While some filmmakers are excited about the creative possibilities, OpenAI acknowledges it’s still early days for commercial partnerships. They’re actively seeking feedback from the industry.

AI’s Potential to Transform Filmmaking

Some filmmakers, like Ben Affleck, believe AI can streamline the less creative and more expensive parts of filmmaking. Studios see the potential for cost savings in animation and visual effects. However, they’re cautious after seeing tech companies like Google, Meta, and Netflix profit from their content without significant returns for the studios. Unlike record labels, studios didn’t invest in platforms like YouTube or Netflix.

Lionsgate’s AI Partnership

Lionsgate, a mid-sized studio, partnered with AI startup Runway in September 2024 to train an AI model on its content library. Lionsgate plans to use this technology for future projects. Other studios have discussed similar arrangements with OpenAI, allowing them to use AI internally without giving public access to their characters.

Licensing and Copyright Discussions

Studios have also explored [[licensing]] their movies and TV shows to OpenAI, potentially worth millions of dollars. However, these talks are still in early stages. One key challenge is figuring out how to share profits with filmmakers and actors.

Key Challenges and Future of AI in Filmmaking

Finding a financial model that benefits both studios and tech companies is crucial. There are also complex questions about profit-sharing with creative talent. As AI technology continues to advance, its role in filmmaking is likely to expand, making these negotiations even more critical. The [[latest news]] and [[business analysis]] suggests that the future of AI in Hollywood is still taking shape.

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