More AI in Hollywood: EY Media-entertainment Chief’s 2024 Industry Forecast
Media-entertainment chief of EY, John Harrison, predicts a strategic focus on AI integration to enhance productivity and creative processes in the entertainment industry for 2024.
In an insightful conversation with John Harrison, the Americas media & entertainment leader at accounting firm EY, The Hollywood Reporter delves into the evolving landscape of the media and entertainment industry as it faces the new year. Harrison, known for his adept analysis and forecasting, offers a comprehensive look at how artificial intelligence (AI) is increasingly becoming a central focus, overshadowing the once buzz-worthy Metaverse.
AI, as Harrison points out, has generated considerable excitement within media circles. Companies are cautiously yet actively exploring AI's potential, undertaking pilot projects and forming internal teams to strategize its integration. The focus is twofold: enhancing productivity by infusing AI into back-office operations and propelling growth by incorporating AI into the creative process. This includes leveraging AI for more efficient editing, dubbing, and personalizing content recommendations, particularly for streaming services.
The Hollywood labor talks, which reflected concerns about AI replacing creative roles, now seem to be shifting towards a consensus on AI as a tool for enhancing the creative process rather than replacing it. Harrison emphasizes the rapid evolution of AI and its potential to improve efficiency in an industry where cash flow is crucial.
On the advertising front, Harrison remains cautiously optimistic for 2024. He suggests that the advertising market will continue to evolve as well, with marketers seeking innovative ways to reach consumers amidst the declining viewership of traditional linear platforms.
The conversation also touches on the media and entertainment mergers and acquisitions (M&A) landscape, driven by recent speculative talks around Paramount Global. Harrison believes that the rationale for consolidation remains strong, with mergers serving as effective means for media companies to scale and compete against digital giants. However, he points out the complexities involved in such deals, including regulatory challenges, particularly in an election year like 2024.
Harrison notes a marked decrease in enthusiasm for the metaverse. Initiatives that were fervently pursued a couple of years ago are now being scaled back or disbanded, with companies taking a more measured approach to VR and AR developments. He also addresses the economic aspect, particularly the impact of inflation on entertainment expenses. Harrison predicts that media companies will increasingly focus on creative bundling and partnerships in 2024 to enhance the value proposition of entertainment offerings to consumers, a move driven by the recognition that entertainment spending is, after all, discretionary.
Harrison's insights paint a picture of an industry at a crossroads in the coming year, with AI taking center stage as a catalyst for change, while other trends like the metaverse take a backseat. Harrison’s analysis suggests a year of strategic experimentation and careful consideration of AI’s role in shaping the future of media and entertainment.