The entertainment world, an ever-evolving cosmos of creativity and innovation, is no stranger to disruptions. With each passing decade, this landscape has witnessed substantial changes, triggered by numerous internal and external factors. Seismic shifts have reshaped and continue to shape the world behind those flickering images on a screen.
One such event is the advent of streaming platforms, a technological leap that has revolutionized how we consume entertainment. The rise of Netflix, Amazon Prime, and their counterparts in the last decade was not just a format change, it was an eruption that rewrote the game’s rules. It decentralized the power structure, making room for lesser-known creators to step into the limelight, while challenging established conglomerates. It also blurred geographical boundaries, making content accessible and influential across borders, leading to a significant shift in narratives and audience expectations.
Hollywood Writers Strike
The ongoing writers’ strike in Hollywood is a stark reminder that the path to innovation is not always smooth. A seemingly isolated incident, the strike brings to light the mounting tensions and disputes over fair compensation, intellectual property rights, and the changing dynamics of the entertainment world.
A traditional production model sees individuals collaborating to shape a concept, decide on its genre and duration, and write a whole season. This idea then moves through the production phase, involving crew members, actors, and directors, finally transitioning into post-production. Throughout this process, the writer has been an integral part, working closely with actors to fine-tune lines and characters.
However, we are now seeing a change in this dynamic. Increasing financial constraints have pushed studios to cut costs, often at the expense of writers. By reducing their employment weeks, writers are losing income and finding themselves increasingly distanced from the production process. With the rise of streaming platforms and the ensuing changes in viewing habits, writers argue that their pay has not kept up with the profits amassed by the platforms and studios.
The writers’ strike is a microcosm of the broader struggles within the industry, highlighting the need for significant changes in business models and industry practices. It is just a cause but a symptom of the ongoing transformation.
Constant Disruptions in the Entertainment and Gaming Industry
The advent of smart devices, streaming platforms, and cloud-based workflows marked the beginning of a digital revolution in the entertainment industry. This wave, accentuated by cord-cutting and globalization, disrupted traditional models of content creation, distribution, and consumption. The COVID-19 pandemic added fuel to this fire, forcing the industry to adapt and innovate in ways previously unimaginable.
However, the gears of change are still turning. The horizon of this entertainment landscape is rife with exciting new possibilities, owing to the rise of artificial intelligence, gaming engines, free ad-supported streaming television (F.A.S.T.) channels, and Generation AI (Gen-AI) automation in development, production, and localization.
Furthermore, business model adaptations in light of the ongoing tug-of-war between advertising and subscription revenues, coupled with the continued globalization of content production and distribution, are set to redefine the entertainment supply chain.
Let’s break down each element and how it’s contributing to the transformation of the entertainment landscape:
AI is playing an increasingly important role in the content development, production, distribution, and consumption of entertainment. AI algorithms can analyze large datasets to identify patterns and make predictions, allowing for advanced content curation for discerning audiences, and even reliable insights for investments in new content creation.
AI has the ability to forecast the most popular content categories during the development phase. Platforms like Vitrina offer the opportunity to monitor global deals, gaining insights into upcoming release schedules for new content. This valuable information enables service providers to evaluate potential opportunities, whether they are related to production projects, post-production, localization, or distribution. During production, AI allows for greater speed and quality for services such as real-time pre-visualisation, CGI, VFX and even performance capture through virtual production techniques. Further downstream, for services of post-production, AI aids to speed up editing tasks. To localise content, AI helps quickly and efficiently translate content into multiple languages greatly assisting their human counterparts to focus on nuanced edits to deliver a high quality output.
Some filmmakers experiment with AI in scriptwriting and editing, while music producers use AI for songwriting and sound design. By automating these processes, content creators can save time and resources, increasing their efficiency and capacity to produce more high quality content.
Sophisticated gaming engines are used for various purposes such as creating digital twins, simulating environments in films, and even designing virtual sets. Advances in real-time rendering, physics simulation, and AI have made gaming engines like Unreal Engine and Unity pivotal for the creation of immersive and interactive entertainment experiences.
Streaming services have opted for a new business model where they offer free content supported by ads, rather than relying on subscription fees. This model is gaining popularity as audiences, particularly those affected by subscription fatigue, seek cost-effective ways to access a diverse range of content. Again, the use of AI in these technologies allows for contextual AD targeting making it a better experience for the audiences and also providing an improved ROI for the advertisers.
How to navigate the entertainment industry’s new normal?
In light of these developments, solutions are needed to navigate the entertainment industry’s new normal. This is where a platform like Vitrina.ai comes into play. Vitrina.ai is dedicated to understanding and mapping the ever-changing landscape of the entertainment supply chain.
At Vitrina, we track over 120,000 companies, 110+ markets, 1000+ content services, and nearly 1 Million titles worldwide. Every week, we analyze hundreds of entertainment deals to identify trends and industry shifts. Our powerful AI and comprehensive supply-chain search provide actionable market intelligence. We empower Entertainment industry professionals to adapt, thrive, and make informed business growth decisions on a global scale.
Disruption, often, is a catalyst for change and innovation. However, it’s crucial to navigate these disruptions with care, ensuring that the transformation benefits all stakeholders in the supply chain, not just a select few. The ongoing Hollywood writers’ strike is a critical juncture in this journey, a moment that might redefine the evolution of the entertainment supply chain. Leveraging platforms like Vitrina.ai, with its deep insights and extensive analysis capabilities, can play a pivotal role in making this navigation process more efficient, informed, and inclusive for all.