David Ellison, the chief executive of Skydance Media, declared that artificial intelligence represents the most significant creative breakthrough in modern history. Speaking during the first earnings call for his newly merged entertainment empire, Ellison positioned the combined Paramount and Warner Bros. studios as a technology-driven enterprise. He argued that the technology would allow his companies to produce content faster and at a lower cost than traditional methods allow.
Ellison Compares AI to the Advent of CGI
Ellison drew a direct parallel between the current state of artificial intelligence and the introduction of computer-generated imagery in the early 1990s. He cited landmark films like “Jurassic Park” and “Terminator 2” as examples of how digital composites unlocked new storytelling possibilities. He stated that he personally believes AI will have an even greater impact on creativity than those earlier digital tools.
“AI really has the potential to be the biggest creative unlock in modern history,” Ellison said. He noted that the original “Terminator” film was made for $4 million in 1983. Making that same picture today would cost between $60 million and $70 million. Ellison argued that AI tools would make budgets more manageable, allowing studios to take more risks on original storytelling.
Merging Studios and Cutting Costs
The Skydance CEO outlined a strategy to find $6 billion in cost synergies by merging the corporate functions of Paramount and Warner Bros. This includes consolidating back-office operations, real estate, and facilities. Ellison also highlighted the use of Oracle Fusion cloud applications to streamline these administrative tasks. He described the plan to merge the Paramount+ and HBO Max streaming services within a year as an ambitious target that is possible because of the latest artificial intelligence tools.
Skydance plans to spend $30 billion annually across its content portfolio. This budget covers a wide range of projects, including prestige television, CBS procedurals, MTV reality shows, NFL sports rights, and feature films. Ellison emphasized that while the industry embraces these new tools, there will always be a premium for hand-crafted storytelling. He dismissed the notion of relying solely on low-quality AI-generated content, which he referred to as “AI slop.”
Ellison views the company’s intellectual property as a protective moat against the influx of AI content. He described his empire as owning 40 franchises valued at over $1 billion each. These established brands are intended to deliver premium experiences to the combined subscriber base of more than 203 million people. The CEO also noted that James Cameron, a major backer of the Skydance deal, has been a pioneer in adopting new production technologies.
Source: The Hollywood Reporter
