Generative AI’s most significant effect on prominent content producers and distributors lies not in disrupting the media creation process but in empowering their strongest rivals: YouTube and TikTok content creators. These platforms now have access to additional tools that enable them to penetrate further the daily video consumption that the media industry fiercely competes for.

In a newly released report titled “AI and Competitive Advantage in Media” from the studio-funded think tank ETC, generative AI is identified as a potential disruptor of the already challenging economics within the media industry. The report highlights the stable demand (limited to 24 hours a day) and the exponential growth in supply as critical factors.

Yves Bergquist, ETC’s resident data scientist, and AI expert, draws a parallel between the current developments in the media industry and the automation of manufacturing, emphasizing the shift towards making the production process computable, similar to what occurred in the manufacturing sector.

The concept of content being “computable” refers to its production in large volumes and its ability to be processed by machines. This entails every aspect of content creation, distribution, and audience feedback is transformed into data that can be analyzed and dissected.

Unlike traditional media companies, which produce content linearly and as individual entities, they are not inherently “computable.” Their content is often scarce, whole, long-form, and lacks the structured format required for easy manipulation by online audiences or machine analysis.

However, studios and streaming platforms will need to adapt and embrace this computable approach to remain relevant in the future.

ETC breaks down the creative process into three components. Yves Bergquist refers to the initial phase of generating ideas and understanding audience preferences as “zeitgeist intelligence.”

Next, we have the central aspect of the creative process, wherein creators establish their unique voices and make crucial strategic choices regarding the product they intend to develop.

Subsequently, the actual production of the product takes place.

Generative AI primarily affects this final phase of production. However, automating the production process enhances the significance of zeitgeist-sensing and creative decision-making and provides creative decision-makers with tools for rapid, cost-effective tinkering, experimentation, and prototyping.

New projections from WARC indicate that advertising revenue on all YouTube platforms, including YouTube TV, is expected to experience 4% growth this year, reaching $30.4 billion. The growth is projected to continue in 2024, with an estimated increase of 10.3% to $33.5 billion.

This anticipated growth in 2023 is seen as a positive turnaround for YouTube, following a decline of 8.8% in ad revenue during Q4 of 2022. During that period, marketers redirected their investments towards search, retail media, TikTok, and Instagram Reels.

“It’s been a tricky 12-month period for YouTube, which is increasingly battling against short-form video platforms like TikTok as well as long-form content streamers in the connected TV space,” says Alex Brownsell, WAR Media head of content. “However, as trading conditions improve in digital advertising, YouTube can expect to see revenue growth improve.”

To adapt to the changing landscape, YouTube has been focusing on its Shorts format, which consists of videos lasting 60 seconds or less, as well as enhancing engagement on connected TV.

According to Media Post, the platform is also introducing innovations such as unskippable 30-second ads and “pause experiences” on TV, aiming to help marketers effectively reach audiences across various screens and achieve their performance and brand-building objectives.

Local journalism organization, Report for America is teaming up with investigative specialists, Investigative Editing Corps to promote investigative reporting in local newsrooms. Over the next two years, they will oversee up to 10 projects in their host newsrooms, with the aim of producing impactful stories that resonate with local communities.

Founder of Investigative Editing Corps, Rose Ciotta, highlighted the significance of this collaboration, stating, “This collaboration is all about helping local news organizations produce stories that matter to their communities. It also allows experienced editors to help train the next generation of investigative reporters at a time when democracy demands strong fact-based reporting.”

Kim Kleman, executive director of Report for America, expressed enthusiasm for the initiative, stating, “We had a lot of interest among our host newsrooms and corps members for this help. They pitched terrific story ideas but acknowledged little bandwidth and/or experience to see them through. We’re thrilled to be able to satisfy this need.”

Each project will span three to six months and will be assigned a freelance investigative editor or editors who will work closely with the project team and newsroom leadership. Rose Ciotta will oversee the overall management of the effort.

The first five newsroom partners for this collaboration are have been announced, following a selection process among the newsrooms that applied earlier this year. Additional projects will be chosen on an ongoing basis.