For decades, major studios held a structural advantage: the resources to produce at a quality level no one else could match, and an audience with limited alternatives. That combination justified massive, concentrated bets on tentpole productions.
AI has changed both sides of that equation simultaneously. Production costs are collapsing toward zero. The quality gap is shrinking rapidly. Audience options are effectively infinite. And consumer risk tolerance — the willingness to show up and commit — is evaporating.
Individual creators with AI tools are producing compelling content in days, serving niche audiences directly, and risking almost nothing per attempt. Studios are competing against this with $200M, multi-year bets that require audiences to show up.