This data is courtesy of Dan Shapiro.
As there are only so many people and hours in the day, the market for human attention is finite. Hollywood is spending more money to make TV and movies, but its market share is declining. People, especially younger people, are far more likely to watch videos on the internet made by small creators. Needless to say, the small content creators' costs are vastly cheaper. AI is rapidly making them cheaper still.
And it's not just that small creators using AI-generation will displace Hollywood's existing efforts; they are likely to create new artforms that will displace the old screen/broadcast formats of TV shows & movies too. AI-gen artforms, as yet uninvented, may be real-time rendered, personalized for individuals, hyper-niche, etc, etc
This is all part of a surprising trend with AI, its tendency towards decentralization. Some dommerist nightmares see all powerful corporations in the future, but as with open-source AI & robotics equalling the Big Tech efforts, the trend seems more for AI's power to be dispersed.
The issue isn't that a single entity made it, the issue is that the single entity that made it is operating at a loss. Training LLMs is a massive investment of energy, material, and finance capital. They can operate at a loss for now because they're being pumped with liquidity from investors eager to get in on the next hype wave. That won't last, investors will eventually expect profits and when these companies can't produce those profits investors will pull out. AI isn't here. These are chatbots.
You don't think they're actually intelligent, do you?