Major US execs say AI and YouTube are turning sector on its head

AI will transform the TV industry, slashing production costs and resulting in widespread job losses, according the US bosses of RedBird IMI and Candle Media, but the importance of human creativity will remain. 

RedBird IMI chief executive Jeff Zucker, who counts All3Media among his company’s investments, told the RTS Cambridge conference that utilisation of AI will surge but that a mixed ecosystem would evolve. 

“When looking at the investments that we’re considering, part of that is in terms of how companies are utilising AI to better enhance their bottom line,” he said. “How they use AI is critical.” 

And, while AI “will fundamentally upend everything”, he added that audiences would still want personal connections, such as seeing influencers in person. 

“That’s why on-screen stars are still so important,” he said. “And let’s see if AI really can write with the same emotion as the great screenwriters do at present - I don’t think they do yet.  

“AI can provide everyone with a paintbursh but you still need a Picasso to come along to create a masterpiece.” 

Zucker was joined on stage by Candle Media chief executive Kevin Mayer and Raine’s co-founder Joe Ravitch.

Former Disney senior exec Mayer added that AI production software such as Sora will “democratise” content creation, reducing barriers to entry, but said that for “incumbents it could make it very difficult.” 

Tech platforms are crucial but risky partners

Mayer said that if he was creating a media group from scratch today he would base it around a social media presence, creating “monetisation platforms” around that activity, such as creating TV shows, games and films.  

Zucker described social media and digital creators as “a huge part of where the world is going” but he added that the value of more traditional production models and broadcasters still held value. 

“We’re still big believers in content and that’s why we made such a bet with All3Media.” 

Zucker said a mixed economy willevolve, adding: “Both will co-exist, there’s a place for traditional scripted and unscripted content.  

“If you have patient capital, like we have, and if you can stay the course, then you’re in good shape. There will be consolidation in the long term and there needs to be, that’s fine, but you can play in that world and in the digital economy. But you are vulnerable to slight tweaks in the algorithm. Going all in on that is risky. 

Joe Ravitch, co-founder and partner at US investment bank Raine - an early investor in CoComelon prior to its acquisition by Candle Media - added expanding IP on Roblox and YouTube “offer huge opportunity for individual monetisation.” 

The value of franchises and personalities will only grow, he added, but Mayer also pointed to the innate risk of relying on platforms whose algorithms can transform a business model overnight. 

“Platforms are very powerful things. They can provide global energy and dynamism, create stars overnight, especially on TikTok - you can gain five million followers overnight. 

“But you can’t monetise that. TikTok doesn’t offer you money to put your content on their service. It all goes on technology and every piece of content is free, and are they going to change that soon - I don’t think so. 

“One exception is YouTube - sharing about half of their revenue with creators and that has created an incredible economy that no one else has replicated. It’s unique. 

“But he added that the platform has “a very central ability to control media”.  

He said: “YouTube can be hard to deal with at times. It might have good intentions but then it might change the algorithm and that could have unintended consequences. You have to be careful.” 

ENDS