Social media has edged out streaming video globally as the choice of entertainment, relying on user-generated content served up through algorithms in seemingly endless variety. This is shaking the basic assumptions of the entertainment industry, which must spend on creating content and charge viewers accordingly. Brands have also migrated advertising to where the eyeballs are - on mobile devices - tightening the squeeze on studios as they try to connect with their shrinking base of viewers. Since screen time per viewer has remained static, the entertainment industry may see hybrid platforms emerging that mate high-quality content franchises of streaming video with the advanced technology of social media to match advertisers to audiences.
AI is weighing the scales further in favour of social media. It is allowing independent creators to increase their production values at little cost. There are incentive structures in place to expand reach. Audiences get this content for free through algorithms meant to increase engagement. Brands see this as a more credible connection with consumers. Younger audiences find social media content to be more organic and form social networks around specific interests and individuals. This degree of familiarisation is not possible with characters on screens larger than those of smartphones. Any content created for one-way communication is necessarily handicapped.
Studios are navigating this transition by scaling up to offer their intellectual property the best available technological support. They are shedding linear TV platforms and engaging more deeply with streaming video. They are experimenting with media formats to test audience attention. But the economics of premium video content need to be reset. Costs need to be lowered, and production times must be shortened. The technology that is making user-generated content engaging will have to be brought to bear on what the 'professionals' are creating. And they must bridge the trust differential with social media creators, who can very easily be called out for unethical behaviour.
AI is weighing the scales further in favour of social media. It is allowing independent creators to increase their production values at little cost. There are incentive structures in place to expand reach. Audiences get this content for free through algorithms meant to increase engagement. Brands see this as a more credible connection with consumers. Younger audiences find social media content to be more organic and form social networks around specific interests and individuals. This degree of familiarisation is not possible with characters on screens larger than those of smartphones. Any content created for one-way communication is necessarily handicapped.
Studios are navigating this transition by scaling up to offer their intellectual property the best available technological support. They are shedding linear TV platforms and engaging more deeply with streaming video. They are experimenting with media formats to test audience attention. But the economics of premium video content need to be reset. Costs need to be lowered, and production times must be shortened. The technology that is making user-generated content engaging will have to be brought to bear on what the 'professionals' are creating. And they must bridge the trust differential with social media creators, who can very easily be called out for unethical behaviour.
