- I spent three days at SXSW, where Hollywood is divided over AI, LA’s future, and more.
- Insiders also fretted over Trump’s influence and debated YouTube’s rise in podcasting.
- Creators may be getting big deals, but they’re still fighting for respect.
The contours of the entertainment industry feel like they’re being remapped in real time — and that sentiment was reflected at this year’s South by Southwest.
I flew to Austin for the festival, where creative folks come together to share knowledge and ideas. Hollywood has been pummeled by strikes, contraction, and tech disruption. SXSW still had its tacos, tequila, and movie stars (Seth Rogen, Blake Lively, and others showed up to promote projects). But festivalgoers told me it felt more muted than in years past, a fitting metaphor for the uncertain state of the industry.
I spent three days talking with filmmakers, media executives, and other insiders to get a temperature check on the TV, film, and the creator economy. Some were riddled with existential angst, while others saw opportunity in the chaos. Here were the biggest topics and debates I heard on the ground.
AI fights are as hot as ever
A few years into the generative AI era, the distinction between good AI and bad AI is coming into sharper focus.
I heard from a few camps. There’s the creative community that’s embracing AI’s good parts (saving time on mindless tasks) while being conscious of its bad parts (job losses and artistic theft). Then there’s the debate on the timeline. Some think the film industry is a long way off from being replaced. Others believe full-length movies made with AI actors indistinguishable from the real thing are closer than you think.
There’s also a fear among some that Big Tech will set the rules of the game, with the latest example being Amazon adding its controversial music generator Suno to Alexa+.
“These tech companies have more money than anyone’s had in the universe, and they’re using it to get their way and trample on the rights of others,” said entertainment lawyer Gene Salomon, a partner at Gang, Tyre, Ramer, Brown & Passman.
Podcasts: To see or not to see
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Podcasting was a big topic at the festival, helped by the fact that YouTube is now a major podcast player.
While there’s definitely excitement among podcasters about the growth in the space, not everyone is sure what to make of the shift to video. Podcasters have to decide if putting their show on YouTube in video form is worth the extra production time and expense required.
Even uber-podcaster Megyn Kelly has her doubts, as she expressed on a recent edition of her show, saying, “Can’t be in the cam glam all day long — it’s just weird.”
Advertisers are intrigued because video podcasts offer another way to benefit from the authentic relationship podcasters have with their audiences. However, not all video pods have the high production quality they require. Plus, they’d have to come up with new ad creative and figure out which budget the dollars would come from (video? marketing?).
Some also see the rise of YouTube and worry it’ll crowd out established podcast players like Spotify and Apple that have less established ad businesses.
“You’d feel better if there was parity,” one audio exec confided to me. They, like some others I spoke with at the festival, asked to remain anonymous to discuss business dealings.
Hollywood’s Trump turn
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President Donald Trump’s presence loomed over the blue enclave and largely liberal Hollywood and creator crowd.
There was simmering worry among some insiders over the partial dismantling of DEI in Hollywood and an embrace of Trump-aligned material. The latest example was Amazon bringing the Trump-starring reality show “The Apprentice” to Prime Video. It follows the streamer paying for a Melania Trump documentary that the first lady will executive-produce.
Hollywood has been exploring making more conservative entertainment for some time, but insiders said the vibe shift had intensified with Trump in office.
One entertainment lawyer told me that some financiers are scrutinizing filmmakers for their political views before deciding to invest.
This person added that they had multiple clients get notes from streamers or networks they felt were designed to avoid attracting the ire of Trump or his allies. In one case, the note was to avoid making a prominent trans character come across as too positive.
“I’ve never had a president figure so much in decision-making,” this person said.
Creators are still fighting for respect
First We Feast
In some ways, it’s never been a better time to be a digital creator.
YouTube’s rise in the living room has helped legitimize social media talent. Hollywood is finally waking up to it, with top YouTubers like MrBeast and Ms. Rachel getting streamer deals.
But I saw a dichotomy between the attention YouTube lavished on creators at the festival and how some creators really feel.
“Hot Ones” host Sean Evans griped that he still has to fight for recognition from advertisers, despite his YouTube show having become a regular stop for stars including Scarlett Johansson and Margot Robbie.
In one conference room, influencer advocates lamented (to mostly empty chairs) that despite their increased visibility in pop culture, creators still suffer from a lack of job protection, respect as a worker class, and power versus the platform giants.
Go niche or go broad?
Business Insider
There’s a long-standing narrative in Hollywood that the monoculture is over.
Few programs can command a massive audience outside of sports. The global streamers haven’t produced a new Disney-level franchise, despite spending billions. No one at the festival seemed especially optimistic about the future of the Bond franchise now that it’s in Jeff Bezos’ hands. Blockbuster movies feel few and far between.
Some industry insiders believe the future lies in going after niche audiences.
It’s working for Fox-owned Tubi, which has grown by programming to fandoms as narrow as those who like “comfort horror.”
Others want to see Hollywood take more risks.
“To me, great art comes from challenging audiences, and then figuring out how to get audience buy-in,” Salomon said.
Hollywood is over. Long live Hollywood.
Business Insider
I’ve been writing about how Los Angeles’ importance to the entertainment industry has been diminished over the years by an exodus of productions and workers to lower-cost places like Atlanta and Miami. The entertainment spending slowdown and devastating LA wildfires have added to its troubles. There’s a lot of interest among filmmakers in ditching LA for cheaper, more livable states that offer tax incentives to the industry.
But they also acknowledge that the power center will remain in LA. When it comes to high-stakes functions, like writers’ rooms and casting of top roles, the traffic still goes one way.
Producer Britta Erickson said: “Do I see LA coming to people in the Midwest, Cincinnati, for a meeting? Probably not. I don’t think it’s going to be a major shift.”