An introduction
Let me start with a little background on myself, and how I’ve come to these conclusions.
For the last three years, I've been deeply immersed in the tech industry, investing in and collaborating with companies at the forefront of various technologies. Many of which have been those pioneering advancements in AI and chip technology, critical components that are propelling AI forward at an unprecedented pace.
I know AI is often viewed with skepticism and even dubbed a "dirty word" in this industry, but its rapid development is undeniable. We are witnessing an acceleration in AI that is poised to continue, if not intensify, in the years ahead.
This experience has afforded me early access to groundbreaking AI technologies and companies specializing in generating text, images, music, and video content. The quality of output is astonishingly high, to the point of being scarily impressive. And it's only improving from here.
This surge in AI will bring forth a transformative time for the industry, reminiscent of the shifts from Blockbuster to Netflix and theaters to streaming. This period will certainly challenge many, and not all will weather the transition. However, those that emerge on the other side will find themselves at the dawn of a new golden age in storytelling and content creation, an era that will leave a lasting impact for generations.
Self-generated content / entertainment is on the way.
I believe that within 10 years (and maybe as soon as 5), a large percentage of the content we enjoy will be self-generated. In other words, many of the things we watch, read and listen to will be generated by AI.
This will especially be true for children, as they care less about the overall quality of the content and more about high-level concepts.
Let me give a quick example / use case. I have two young boys (5 and 1) that love watching Bluey on Disney+.
Today, my five year old opens Disney+ and navigates to his favorite episode(s) to watch (and re-watch…). But when my youngest is five, he'll navigate to Disney+, and instead of selecting an existing episode he'll create his own right on the spot.
“I want an episode where Bluey and Bingo go to the Zoo.”
Within seconds, an episode will be created that will be indistinguishable from the episodes that we love today.
From here he can choose to save his creation (to re-watch later), remix it (“again, but have Bluey get lost while at the Zoo.”) or create a brand new episode. This pattern will repeat over and over again.
Millions of episodes of Bluey (for example) would be created each year.
New characters will be created specifically for this medium.
This technology extends far beyond existing characters; it opens the door to the creation of entirely new personas and universes as well.
This is more than likely the best approach at the beginning anyways. While Bluey is an established brand that millions love, it wouldn’t be the same if millions of new episodes where being created each year.
Instead we’ll likely see the emergence of fresh characters and series designed without any pre-existing episodes (but instead will have months and months of training data, rules and artwork to pull from). A distinct advantage for Disney, explored in more depth below, lies in its ability to integrate these new characters into its well-established universes. Imagine a series exploring the life of a young alien within the Star Wars universe or following the adventures of a new character in the magical worlds of Pixar.
Millions of original episodes will be created each year, many of which will become new all-time favorites for the fans creating them.
It won’t just be video, but expand into all aspects of digital entertainment and merchandise
This technology would enable customers to create a variety of digital experiences, including books, audio stories, coloring books, and music or songs. Furthermore, this digital content can be transformed into tangible items, such as printed books, posters, t-shirts, and other merchandise, allowing for a seamless blend of digital creativity and physical goods.
The streaming wars will heat up, but Disney has a unique advantage.
This future will not be unique to Disney. Netflix and other streaming platforms will adopt this form of content as well. YouTube will give these tools to its creators to create new content. The next Pixar and award winning animation studio could very well stem from this process (And I think is very likely).
But Disney has what others do not. An edge that would take a hundred years for others to follow.
Disney's unparalleled advantage here lies in its rich library of intellectual properties (IP), beloved characters, and expansive universes, spanning from the enchanting worlds of Pixar to the epic sagas of Star Wars and Marvel.
This treasure trove of content not only places Disney at the forefront of traditional media but also provides a robust foundation for an AI-generated future. The emotional connections and deep-rooted love that audiences have for Disney's characters and stories is something that simply cannot be replicated by competitors like Netflix (and certainly YouTube).
While customers might be able to create their own Minion shorts on Peacock, they will only be able to create with their favorite Disney characters on Disney+.
A Harmonious Coexistence with Traditional Content Creation
Viewing the rise of AI as a threat to traditional content creation misses the broader picture. This new medium should not be seen as a doomsday for the creators who have long been the backbone of Disney's storytelling history.
Instead, it represents an additional layer of interaction and creativity, allowing audiences to engage with their favorite characters in more personalized and imaginative ways. Far from replacing human creativity, AI-generated content could augment it, offering tools that put the power of creation into the hands of fans, thereby fostering a deeper connection with the content they love.
This opens the door to new opportunities in revenue, retention and data collection.
New revenue opportunities
Bundle with Disney+
Bundling these features into the Disney+ subscription (and even a new, more expensive tier) would attract new customers to the platform. Creating a new, more expensive tier on top could also lead to higher revenue opportunities.
Merchandise
Imagine allowing customers to create their own designs for merchandise. Apparel, posters, artwork, stickers, digital wallpapers, coloring books - the list goes on and on.
Increase retention to Disney+
One of the best ways to retain customers is to continually give them a reason to stay (obviously). This technology allows for a near unlimited number of possibilities to create new content and keep customers entertained. This also removes pressure from content creators to produce new stories at record pace (quality over quantity).
The data generated will be invaluable
Millions of people will use the platform to create content every day. These queries and prompts can be abstracted to learn all-new patterns of what customers want. The types of characters, stories and themes will be become clear.
This will take time and attention, so it’s important to start early
While the trajectory of AI development is accelerating faster than anyone is prepared for, crossing the final threshold into full optimization and refinement—the leap from 90% to 100%—will be exceedingly challenging.
This final push towards perfection, where Disney would aim to position itself, requires not just time but a deep integration of AI technologies with creative processes, an understanding of audience engagement through data, and a nuanced approach to storytelling that only comes from prolonged experimentation and learning.
Starting early ensures that Disney can navigate these complexities at a measured pace, allowing for the cultivation of expertise and the development of proprietary AI tools and methodologies that align with its history of storytelling excellence.
I'd love to help Disney navigate in to this future - we're in for a magical (And wild) ride.