It feels like we’ve all seen this movie before, and we know it doesn’t end well.
Bloomberg reported today that Meta and Alphabet are offering Hollywood studios “tens of millions of dollars” to license their film and TV libraries for AI training.
Remember 2007, when Netflix launched its “Watch Now” streaming service? They had very limited content until they approached major studios for programming. Most studios refused, except for Starz. In 2008, Starz agreed to license its programming to Netflix, including its Disney and Sony premium pay theatrical windows, for $20 to $30 million annually. This was “found money” for Starz, as they didn’t foresee the impact that their deal would later have on their business and on the entire TV industry. Over time, all studios followed in licensing content to Netflix, further fueling it’s growth and accelerating the shift in viewing from linear TV to streaming.
We’re in a similar situation with AI right now. While Disney and Netflix have reportedly declined to license their libraries for AI training, WBD is considering it.
With so many high-quality libraries available and many legacy media players needing cash, AI platforms will win out, securing enough library programming to train models.
There is an inevitability to the growing use of AI in film and TV production. But I hope we can agree that the Starz/Netflix deal offers valuable lessons in what not to do.
#AI #ArtificialIntelligence #Media #Streaming #Netflix #Meta #WBD #Disney #Alphabet #Paramount #Peacock #ContentLicensing #TVProduction #DigitalTransformation #EntertainmentIndustry #FutureOfMedia
Co-Founder & CBO | Scaling User Growth, Monetization
3moawesome to see Geoff Renaud talking about this. Have you connected with James Barlow on this topic?