Streamers opt for Generative AI to cut rising costs

Consumers spend $73 per month on average on streaming services matching the monthly costs of traditional pay TV, reveals market research group Park Associates.

In partnership with FPT Software, Park Associate’s latest report Maximizing Returns: Generative AI’s Impact on Entertainment, explores the emergence of generative AI (GAI) and its impact on streaming services.

The company said rising content costs are driving a surge in service consolidation, higher subscription costs, and rising operating costs for streaming providers.

As of a result, Park Associates has pointed out that streamers are leveraging GAI to assist in content creation, distribution, and consumption, in an aim to counteract losses and control increasing costs.

According to the report, generative AI has created new avenues for streaming operators for monetization. The company highlights the transition from SVOD to AVOD, streamers can deploy GAI to expedite the creation and editing of custom ads to measure advertising effectiveness across audiences.

“Uses of generative AI include providing a natural language interface for editors and content curators or creating content descriptions of different lengths for different platforms/applications,” said Sarah Lee, research analyst, Parks Associates. “The automation afforded by generative AI can easily shave off many hours of work for individual contributors – and save expenses for companies.”

“Leveraging AI in media and entertainment presents exciting opportunities across the media supply chain, with the promise of significantly reducing both content provider and service provider costs while also improving the end user experience,” said Ira Dworkin, Managing Director – Communications, Media, & Entertainment, FPT Software. “FPT Software is investing heavily in AI – both Generative AI and Machine Learning – and partnering with our customers to drive innovation throughout the ecosystem.”