‘The Dor Brothers’ released this 3-minute "$200,000,000 AI movie" which half the internet can’t distinguish from a real Hollywood trailer.
The comments below the ‘movie’ on X are divided: some declare Hollywood dead, others insist craft can’t be automated.
What if both are wrong?
I think the debate is a distraction. AI video generation is not threatening Hollywood studios, it is threatening Hollywood’s workforce.
Why? Follow the money.
I did a quick search. VFX (visual effects) consume 20-25% of a blockbuster budget. If we talk about a $200mn film, that’s $40 to 50mn flowing to ±2mn VFX professionals globally in the market (worth $5-14bn depending on which estimate you trust)
AI video generation is compressing this cost structure by perhaps 90% over the next 3 to 5 years.
Do you think Hollywood studios will resist that?
I don’t think so.
They will embrace it, which will disrupt the production middle class: VFX houses, mid-tier production companies, and set builders. The infrastructure between “idea” and “screen” is impacted.
What is left?
When AI reduces production costs to ‘zero’ then the remaining MOATs are intellectual property, distribution, and the skill to make 100 million people watch the same movie at the same time.
Yonatan Dor (Founder of The Dor Brothers) already said Hollywood called him, not to compete but to hire him.
Overall, my thesis repeats itself. The remaining value migrates to what is uniquely human: sensing what to produce which comes from human vision, human creativity, human intuition.
While Hollywood and Netflix have some of the most creative creators under contract – there is an opportunity for unknown nobodies to compete – IF they have a better idea AND and use social platforms to hack attention and distribution.
Source and links in the comments.
The comments below the ‘movie’ on X are divided: some declare Hollywood dead, others insist craft can’t be automated.
What if both are wrong?
I think the debate is a distraction. AI video generation is not threatening Hollywood studios, it is threatening Hollywood’s workforce.
Why? Follow the money.
I did a quick search. VFX (visual effects) consume 20-25% of a blockbuster budget. If we talk about a $200mn film, that’s $40 to 50mn flowing to ±2mn VFX professionals globally in the market (worth $5-14bn depending on which estimate you trust)
AI video generation is compressing this cost structure by perhaps 90% over the next 3 to 5 years.
Do you think Hollywood studios will resist that?
I don’t think so.
They will embrace it, which will disrupt the production middle class: VFX houses, mid-tier production companies, and set builders. The infrastructure between “idea” and “screen” is impacted.
What is left?
When AI reduces production costs to ‘zero’ then the remaining MOATs are intellectual property, distribution, and the skill to make 100 million people watch the same movie at the same time.
Yonatan Dor (Founder of The Dor Brothers) already said Hollywood called him, not to compete but to hire him.
Overall, my thesis repeats itself. The remaining value migrates to what is uniquely human: sensing what to produce which comes from human vision, human creativity, human intuition.
While Hollywood and Netflix have some of the most creative creators under contract – there is an opportunity for unknown nobodies to compete – IF they have a better idea AND and use social platforms to hack attention and distribution.
Source and links in the comments.
1