CES 2025 Variety Summit highlights AI-driven shifts in streaming content and monetization

CES 2025’s Variety Entertainment Summit explored major shifts in streaming, AI, and content creation, featuring insights from top media executives and industry leaders.

Industry transformation: The entertainment industry is experiencing significant changes in content production and distribution following the 2023 strikes and ongoing media consolidation.

• Networks and platforms are increasingly open to partnerships and creative content windowing strategies
• Production volume has decreased from peak TV levels, with a renewed focus on high-quality “Marquee TV”
• International content and stories from outside the U.S. are gaining more traction with audiences

Technology integration: Entertainment companies are actively embracing new technologies to enhance production and viewer experience.

• Epic Games’ Unreal Engine is revolutionizing virtual production capabilities
• AI implementations are focusing on content discovery and interactive consumer experiences
• Fox Corp. is developing AI-powered search capabilities for its Tubi streaming service
• AI-enabled apps are being designed to provide brand-specific interactions with users

AI considerations: Industry leaders expressed both optimism and caution regarding AI implementation.

• Studios are positioning AI as a “co-pilot” rather than a replacement for human creativity
• SAG-AFTRA emphasizes the importance of consent and compensation regarding AI-generated content
• Concerns about deepfakes and the need for legal frameworks to protect performer rights remain prominent

Content monetization: New business models and platforms are emerging to bridge the revenue gap between traditional and streaming media.

• Webtoon Entertainment reported $1.3 billion in revenue from micro-payments
• Trade Desk is facilitating programmatic advertising across streaming platforms
• Spotify has expanded into real-time bidding with full data signals for advertisers
• Live events are becoming increasingly important for streaming platforms

Technical challenges: Streaming platforms face unique obstacles in delivering content and maintaining engagement.

• Live event streaming requires handling unpredictable traffic spikes
• Platforms are exploring innovative ad formats to maintain viewer attention
• First-party data analysis is crucial for personalizing experiences for both advertisers and consumers

Looking ahead: As the entertainment industry continues evolving, strategic focus will be on balancing technology adoption with audience expectations and monetization opportunities, while carefully navigating the complex landscape of AI implementation and content rights.