Hollywood has witnessed seismic shifts in its business model, from the era of DVD dominance to the advent of streaming giants like Netflix Inc.
What Happened: Last week, speaking at CNBC's Delivering Alpha Summit, Ben Affleck downplayed fears of AI replacing human creativity. He spoke about how the technology is more likely to reshape the costlier, less creative aspects of filmmaking.
AI "will lower the barrier to entry and allow more voices to be heard," Affleck said, envisioning a future where the technology democratizes the industry.
Following his remarks, Workweek's Trung Phan shared a clip of Affleck's co-star from "Good Will Hunting," Matt Damon, where the actor can be seen discussing how streaming replaced DVD economics.
Damon was discussing the topic while appearing on "Hot Ones" in 2021. At the time, he noted how the decline of DVDs, once a major revenue source for studios, changed the types of movies that could be made.
"The DVD was a huge part of our business, of our revenue stream, and technology has just made that obsolete," Damon can be heard saying.
Listening to Ben Affleck on how AI will change filmmaking economics, reminds me of Matt Damon talking about how streaming changed DVD economics. The "Good Will Hunting" guys can cook on business of film.
Why It Matters: AI's potential applications in Hollywood extend far beyond scriptwriting and editing.
From predictive analytics for box office success to digital casting and de-aging actors, AI promises to reshape every stage of filmmaking.
Companies like Warner Bros. Discovery
Last year, reports emerged that the artificial intelligence company Metaphysic was assisting Tom Hanks and Robin Wright, the iconic stars of the 1994 classic "Forrest Gump," in being digitally de-aged for a film.
It was also reported that Disney plans to use its Industrial Light and Magic division to digitally de-age Harrison Ford in "Indiana Jones and the Dial of Destiny," for a scene in which he battles Nazis.
For investors, AI presents opportunities reminiscent of the early days of streaming when Netflix disrupted Blockbuster - the movie rental chain that went bankrupt in 2010.
The entertainment industry is no stranger to disruptive shifts, and AI could redefine how content is created, marketed, and consumed. Studios investing in AI-based platforms, such as Cinelytic or ScriptBook, are leading this transformation.
