The AI Race, the Search for Sticky Content and Building Fan Communities on the Agenda at Variety's Entertainment and Technology Summit

The AI Revolution in Entertainment: A Double-Edged Sword

As I stepped into the bustling venue of Variety's Entertainment and Technology Summit, it became immediately clear that we're at a crossroads. The air buzzed with discussions about AI's seismic impact on entertainment—its promise to democratize content creation while simultaneously threatening the very jobs that keep creative industries afloat.

"The unique aspect about AI is the speed of change that we're seeing is unprecedented," said Javi Borges, EY's global Americas media and entertainment sector leader. "With technology, the time frame between major breakthroughs gets shorter and the change gets faster."

I've seen firsthand how AI tools like Midjourney and ChatGPT have begun to influence creative workflows—from scriptwriting to visual effects. But what struck me most was not just the efficiency gains, but the anxiety that creeps into every conversation: Will these innovations enhance or replace human creativity?

Is It Time for a New Kind of Content?

At the heart of this summit's discussions was an increasingly pressing question: What kind of content will actually stick with audiences in a world saturated by algorithms and automation? The answer, according to industry leaders, lies in building community.

We're moving beyond traditional entertainment models where content is consumed passively. Instead, we're witnessing a fundamental shift toward connected experiences. As Borges astutely noted, "You want to shift from having consumers to having fans and loyal supporters that interact with your product, with your experience on an ongoing basis."

This is where the magic happens—when entertainment becomes a two-way conversation rather than a one-sided broadcast.

The Business of Belonging: Disney's Vision

Disney's CEO Josh D'Amaro laid out an ambitious vision during his presentation, describing how the company is expanding Disney+ beyond video to become a full-fledged ecosystem. He called it "the digital centerpiece of our relationships with fans."

This isn't just about subscription numbers—it's about creating a fan-centric experience that spans multiple touchpoints: streaming, theme parks, merchandise, and exclusive events.

"As we look to make Disney+ the digital centerpiece of our relationships with fans, we're just playing a different game," D'Amaro said.

This approach recognizes something fundamental about modern fandom: people don't just consume content—they want to be part of its evolution.

Sticking Points in the Streaming Wars

The entertainment landscape has become increasingly competitive, with streaming giants like Netflix and Disney vying for dominance. But as we've seen from recent stock performances, the path to sustainable success isn't just about quantity—it's about quality and stickiness.

Netflix's 19% year-to-date decline reflects investor concerns over growth drivers beyond U.S. expansion. Meanwhile, Disney's more measured downturn suggests that while their strategy is still evolving, they're making strategic bets on community engagement.

The Role of AI in the Creative Process

While many fear that AI will replace human creators, the truth is far more nuanced. AI tools are emerging as powerful collaborators rather than replacements. Consider how studios might use AI for initial concept generation or script analysis—leaving the human touch to shape narrative and emotion.

EY's Borges emphasized this point: "We think that AI is an opportunity to really have people do more and we think that there's going to be economic growth because of it. The right governance needs to be put in place. But I think it democratizes the cost of filmmaking."

This democratization could level the playing field for independent creators who've long struggled with budget constraints, allowing them to experiment and innovate at a scale previously impossible.

Consumer Spending: The Wild Card

But even as we explore AI's potential, one elephant in the room looms large: consumer spending. With inflationary pressures and economic uncertainty affecting households across America, entertainment companies must navigate a delicate balance between offering compelling experiences and staying affordable.

Robert Fishman of MoffettNathanson Research captured this well: "Today, elevated fuel costs, persistent core inflation above the Fed target and a depleting savings buffer should all serve as warning flags for consumer spending."

For entertainment leaders, this means rethinking monetization strategies—not just through subscriptions, but through immersive experiences that make customers feel they're getting more than just another stream.

The Power of Community

What I found most compelling was the recurring theme around fan communities. Whether it's Disney's attempt to turn its audience into a brand loyalist or Netflix's push for niche content that resonates deeply with viewers, the common thread is building authentic relationships.

This isn't just marketing speak—it's about recognizing that people are more than consumers; they're storytellers, influencers, and collaborators. As Borges put it: "So whether that's in a community setting or cross- leveraging audiences like Netflix running the 'GTA 6' preview, you're seeing that kind of connectivity."

Looking Ahead: The Future of Entertainment

The summit revealed that while AI is undeniably transformative, it's not a silver bullet. The future belongs to those who can marry technological innovation with emotional resonance.

We're witnessing a new era where entertainment companies aren't just distributing content—they're crafting ecosystems of engagement. From interactive storytelling to virtual reality experiences, the goal remains consistent: keep fans coming back for more.

Final Thoughts

As I left the summit, I couldn't help but feel energized by this vision of collaborative creativity. The entertainment industry is entering a golden age—where AI and human ingenuity coexist, where community drives loyalty, and where fans aren't just watching—they're participating.

The question isn't whether we can build sticky content anymore—it's how quickly we can do it, together.