Entertainment Disrupted: Lionsgate’s AI Partnership: Why “All Eyes Are on This Deal”
No matter what job you do, if you’re seeing this article, then you probably feel the urge to understand what the Lionsgate-Runway deal means for you. “All eyes are on this deal,” says Geneva Wasserman, rattling off the industries that it has implications for. The worlds of gaming, TV, film, short form content all have to be across this. And, yes, advertising too.
A few days ago it was announced that Lionsgate has signed a deal with the artificial intelligence firm Runway which gives it access to Lionsgate’s deep back catalogue to build a new AI model – the promised outcome being that filmmakers will be able to better “augment their work” through the use of AI.
The entertainment company’s output includes franchises such as John Wick, The Twilight Saga and The Hunger Games. You may also know the studio from other recent entertainment articles you’ve read about its recent flop ‘Borderlands’.
The AI deal signals a few things, as Geneva sees it. Now global EVP, film and TV development and financing at dentsu, she’s spent much of her career working in the entertainment industry in legal, development and production. She fits the Lionsgate-Runway deal into a broader narrative within the entertainment business: “The industry’s desire to find ways to increase output speed (while also reducing cost).”
In the past, increased speed meant increased cost. New technologies like this one, she says, promise speed to market at a reduced cost. “That is very seductive for studios who are all under huge pressure in various ways right now. Consumer behaviours have also shifted dramatically with the rise of the choice economy – there is more content than ever in history to choose from that is also fractionated by the rise of gaming, social media, etc. All content creators and distributors across film, TV, podcast, gaming and social will be watching this deal very closely. Lionsgate, as the first major mover, is the litmus test, so the eyes of the industry are on them.”
There’s also a labour story to situate this deal within. Strikes in the entertainment industry have been a significant factor. If tools like the one Runway is promising manage to deliver on their promise, it might give studios like Lionsgate an upper hand, becoming a tool that “could ultimately change some of the labour/union dynamics,” says Geneva. “If it becomes the norm, studios will potentially have more leverage than they currently have.”
Lawyers will be watching, too. “Lionsgate seems to be the test case that other studios and industry firms will be watching to see what happens on the legal and other fronts. I would expect they will adjust based upon the kinds of issues and actions that come up,” says Geneva.
It may even change some of the fundamentals of how entertainment is made. There are reports that proprietary AI models could allow Lionsgate execs to watch rough drafts of films prior to making greenlight decisions. “If this indeed does become a reality, we would expect other studios to make a similar decision in previewing content ideas before committing to the production process,” says Geneva.
We may all be watching this deal anxiously in a professional context, but Geneva isn’t sure we’ll see many consequences as audiences. “I don’t necessarily think that content itself will change yet exactly, but rather the process and the expertise involved in making it,” she says. “This feels like we will see a shift in the workforce and has that potential to impact process from development all the way through to post-production/delivery: from storyboard artists to VFX creatives, this technology will disrupt jobs and even the viability of certain career paths.”
While that is a terrifying thought for those who specialise in crafting content, there is hope that with innovation comes new opportunities. “In terms of outcomes on content, if costs are dramatically reduced, we may see more risk by studios in what they produce and this could be a good thing – the industry has played it safe for at least a decade now (sequels, IP-heavy, fan-first) and bringing back original ideas and risk is something I think audiences, and the industry, crave right now. That said, I believe in human creativity and I feel that we will see a return to creativity with or without new tech/AI,” says Geneva.
Pre-visualization (or pre-viz) tech has been common in the industry for quite some time, but the Lionsgate deal may move things on in a leap. “This deal sounds like the signalling of a new age of pre-viz technology,” says Geneva, speculating that it may lead to a world where clients can have full visibility of a project prior to greenlight, as well as valuable measurement tools and analytics to aid in that greenlight process. She doesn’t want to get too carried away with the potential of AI here, though. “It is unclear whether this will actually have a positive effect on the outputs. Would this technology have greenlit unexpected successes like ‘Everything Everywhere All at Once’ or ‘Slumdog Millionaire’?”
Geneva admits that as an entertainment expert within such a data science and tech-led agency as dentsu, she is always looking for the potential in new applications of things like AI. But networks like dentsu are also built on human creativity. “We are also very measured in our approaches to never count out human experience and input of our development executives,” she says. “As long as this tech is a tool and not an all encompassing replacement to current models and systems, it feels like an exciting opportunity for entertainment development.”
As a nextdoor neighbour to the entertainment industry, advertising is rightfully peeking over the fence as AI deals like Lionsgate and Runway’s take place. What is most appealing in it for brands and their partners is the potential for expanded creative and preview of content and advertising campaigns, Geneva suggests. Modelling may change if AI allows for rough draft content or ad reviews before committing to an idea. “When used in a measured way, this is a really exciting time for brands (just like it is for Hollywood),” she says.
“As I have discussed before, the walls are starting to come down in many ways for brands. With almost every streamer moving to AVOD models, and with more brands engaging in content creation earlier in the supply chain, we are seeing a unique convergence happening in the marketplace. While Hollywood is pulling back on the investment into premium IP creation, brands are coming in with unique partnerships and value propositions. Brands are getting closer to their audiences and bringing more bespoke offerings than ever in history. Runway has the potential to marry all of this for the benefit of audiences – if used as a tool and not a replacement strategy. It is a really exciting time to be working at the intersection of IP and advertising and to see some really innovative thinking by and with our brand partners.”
