Hollywood Is Losing The War For Attention
Young serious addicted to technology mixed race people sitting on couch in row, ignoring each other, ... More using applications in smartphones, surfing websites, typing messages, scrolling social networks.
For a century, Hollywood operated on scarcity. There were limited screens, finite channels, and a well-grooved pipeline for finding, funding, and distributing content. Today's media economy is governed by abundance. Platforms operate as responsive ecosystems, delivering infinite content tailored by real-time feedback to the tastes of the user. Author, investor and former Amazon executive Matthew Ball suggests in his book The Metaverse, Building The Spatial Internet that creative work is no longer fixed from launch but instead tuned by user feedback.
LOS ANGELES, CALIFORNIA - MARCH 04: MrBeast accepts the Favorite Male Creator award onstage during ... More the 2023 Nickelodeon Kids' Choice Awards at Microsoft Theater on March 04, 2023 in Los Angeles, California. (Photo byfor Nickelodeon)
Social media advertising revenue surpassed tv and cable television in time spent in 2022. For Gen Z that happened in 2020. The creator economy makes this shift visible. There are no gatekeepers. The algorithm shows your content to others if others like your content. According to Forbes, the top 50 social media creators earned more than $700 million in 2024.
Synthetic content now appears in two distinct forms. The first is human-driven: creators use AI tools to accelerate production or enhance quality and lower costs. Studios like Holywater and Fable are already producing shows this way. 'We start with the audience, then generate and evolve the content with them,' said Holywater founder Bogdan Nesvit. 'The next stage of content will be generated by AI, not just recommended by it.' Said Dean Takahashi of GamesBeat in an interview. 'TikTok's AI algorithms will create content, instead of curating it.'
DANA POINT, CALIFORNIA - SEPTEMBER 26: David Baszucki, CEO of Roblox speaks onstage during Vox ... More Media's 2023 Code Conference at The Ritz-Carlton, Laguna Niguel on September 26, 2023 in Dana Point, California. (Photo byfor Vox Media)
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Nowhere is this transformation clearer than in persistent game worlds we used to call The Metaverse. Roblox. (380 million monthly users), Fortnite (250 million), and Minecraft (226 million) are social spaces that feature games and entertainment made by other users. Roblox revenue exceeded $3.60 billion in 2024, marking a 28.7% increase from the previous year. CEO David Baszucki envisions Roblox as the central hub for shared experiences that connect billions of users worldwide. Investors love this story. The stock has tripled this year, surpassing the market cap of Warner/Discovery.
NEW YORK, NEW YORK - NOVEMBER 02: Twitch Streamer SOMMERSET takes on Marriott Bonvoy Land in ... More Livestream Event at The Westin New York Grand Central with special guest BROOKLYN BECKHAM on November 02, 2023 in New York City. (Photo byfor Marriott Bonvoy)
Hollywood, entertainment media, and many other industries have already been buffeted by the cultural changes wrought by technology, but we've not seen anything as disruptive as AI since the arrival of the web browser in 1993. Audience erosion has been happening for decades but AI is going to put a rocket under it. On the plus side, AI will fix the problem of skyrocketing production costs, leading to a new 'golden age' of filmmaking. Profits will return. Creatives will no longer be shackled by scarcity. There would be a parade except for the empty offices.
a scorched field after a battle with a shell from a machine gun. field with small sprouts of plants. ... More War concept
Sophocles said "there is no great gift from the gods that does not come with a curse." AI saves the entertainment business, but it's a job killer. And lower cost is not a sustainable advantage in a war with an algorithm, whose marginal cost is zero. Human made stories are never going away but when the war is over, they may not account for much of our attention.
This is the second in a series of stories that began with AI And Hollywood's Next Golden Age. There's much more to explore. In the coming weeks, I'll publish a series of follow-up essays examining what this disruption could mean for Hollywood, gaming, big tech, and pop culture.
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