Openai can’t afford to ignore Hollywood warnings
In February, Openai executives visited Los Angeles and hoped to attack major deals at Hollywood Studios. They left empty-handed. The studio has rejected a partnership to use SORA, the company’s AI-powered video generation tool Bloomberg It has been reportedworried about job losses, citing concerns about how Openai uses data and how potential backlash from trade unions are doing their jobs 2023 Hollywood Strike.
Openai’s failure to beat Hollywood exposes a deeper problem for the company. It is unwilling to prove that it can function within contracts, licensing agreements and labor protections that have dominated the entertainment business for over a century. Openai is not only alienating more than $100 billion in entertainment businesses. This misses the opportunity to show other industries that can build viable and long-term partnerships.
Openai’s Hollywood misfortunes are reminiscent of previous conflicts between the media industry and Silicon Valley. In the early 2000s, Napster appeared poised to overturn the music industry by providing users with an unprecedented digital catalog of songs. The service became a cultural phenomenon, but refusal to engage in copyright law was expensive in the long run, based on the distribution of unlicensed (stolen) music. Key Labels I suedand by the time Napster realized it was better to negotiate a license transaction, it was too late. The music industry has moved forward and has opted for sustainable agreements with Rhapsody, iTunes and ultimately services. Spotify. Openai’s technology is much more transformative than Napster’s technology, but its storyline could look the same.
Like Napster, Openai can’t see its features and Established industries are a better path to long-term growth. Instead of interacting with creators, Openai cut down news stories and consumed them without securing an entire library of books rightand launched a voice assistant that rang out. a lot Like Scarlett Johansson (People who previously refused permission). Among the criticisms surrounding the Johansson incident, Openai I insisted The voice was of another nameless actress and continued. That strategy promptly asked for permission and later, but so far has worked to make Openai a dominant player in AI generating, but it is not sustainable.
Studio friendly AI
As Napster did, Openai opens the door for the film industry to partner with AI companies that respect intellectual property. Lionsgate announced partnership Use runways to build your own AI models trained only in studio catalogs. The resulting model is completely transparent and controlled. Lionsgate knows exactly what IP is being used and can distribute revenue internally or reinvest. Similarly, James Cameron has team There is StabilityAi that leads AI to special effects, and veteran film executive Peter Chernin has teamed up with Andreessen Horowitz to launch AI-Native Studio. promise.
These ventures differ from OpenAI in that they use AI in a narrow artist control pipeline or build new studios with direct Hollywood involvement, or train models with licensing data alone. By insisting control and not acknowledging the filmmaker’s concerns, Openai may eventually find himself looking outside.
Openai should learn from other tech companies that once saw regulations as a barrier but later recognized the benefits of cooperation. For example, Uber promoted itself as a “brokener,” but ultimately worked with city governments, including London and Washington, DC, to secure local governments. contract And strengthen the market’s trust.
Openai still has time to convince legacy industries that it can respect intellectual property rights, data privacy and labor rules.
The first step is to provide more transparency with AI training data, allowing studios and unions to understand which copyrighted materials are being used. Content output systems that track AI-generated output such as scripts and performance do not require complete disclosure of models. OpenAI, the studio, and creators can rely on third-party audits to prove that the model was developed with agreed data restrictions and standards. This can be done while protecting your own information.
Openai must also agree to share revenues with the rights holder in some way. The Spotify-style loyalty system may not be replicable in the film, but the core ideas of creative funds are still viable, especially in controlled cases like Lunway’s deal with Lionsgate. The idea is not to pay per use, but to license a pre-approved dataset and share revenue related to videos derived from that content.
Hollywood opening
There are real opportunities for bundle data. Openai can employ similar models using a bundle of copyrighted content developed in collaboration with unions and individual studios. Even a limited system will show willingness to cooperate. The biggest risk for Openai is not to get the details wrong. Do nothing while your competitors are moving forward.
In this vein, it is Openai’s greatest concern to engage more widely with Hollywood, not just in the studio, but also in the workers and creators. The 2023 strike showed that unions must shape public narratives and policies, and long-term strategies must reflect that. Focusing a portion of AI-driven revenues on industry experts shows an intention to collaborate, not human talent. This kind of initiative can reconstruct AI as creative partners rather than threats, supporting Openai’s position away from opaque general purpose models.
Over 400 Hollywood creatives last month I sent a letter to the White Houseargues that AI companies should follow copyright laws, just like other industries. “There is no reason to undermine or eliminate copyright protections that helped America flourish,” the letter said. The longer you wait for Openai to act, the more you can open the door to do so first.
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