Julia Stoll
Research expert covering TV and video media
Artificial intelligence (AI) and video streaming in the United States - statistics & facts
Was the new TV show you are currently watching recommended by an algorithm? Or was it even written or produced with the help of AI technologies? Artificial intelligence is in fact changing the digital video entertainment industry and redefining how movies and series are produced, distributed, and consumed. As of late 2023, up to 80 percent of movie, TV, and animation companies in the U.S. used or planned to use Generative AI in their production processes. Additionally, streaming viewers demand more personalized and engaging content enhancing user experience. AI-generated recommendations could address the video streaming industry’s most pressing challenges, namely, to retain and gain customers in the crowded on-demand landscape, and to focus on the platforms’ profitability.
While content personalization and recommendations are of enormous value for video streaming providers and consumers, the industry has a long way to go when it comes to using AI in producing movies and shows. Although already integrated in production processes and tasks, the acceptance of this technology is still low and the fear of job losses high.
AI-based personalization impacts viewing experience
The integration of AI into video streaming services has led to significant advancements in content personalization and operational efficiency. Streaming giants like Netflix and Amazon Prime Video use the help of AI tools to analyze vast amounts of data, such as viewing history, behavior, and interactions with their platforms in order to recommend TV series and films tailored to individual customer needs. A late-2023 survey found that around one in five respondents from the U.S. discovered new movies and TV shows through AI-generated recommendations. Furthermore, a significant 50 percent of U.S. viewers find AI-curated content suggestions on connected TVs useful, underscoring its effectiveness in keeping customers satisfied.Navigating industry concerns
Despite its benefits, the integration of AI into the video streaming industry, especially into the movie and TV production industry, is not uncontroversial. Concerns about job replacements, in particular, arose in recent years, reaching a temporary peak with the strike in Hollywood in 2023. Actors and writers were then worried about AI being used for voice reproduction and scriptwriting. Still, as of January 2024, over one third of entertainment leaders believed that voice generation and cloning will be impacted by generative AI in the future. But while production companies see the advantages in using this technology, consumers have mixed feelings. The majority of American consumers are not comfortable seeing a digital replica of a human actor on screen. In contrast, the use of sound or visual effects, as well as illustrations in animations is met with a positive response. However, when asked about the comfort level of watching AI-generated content on video streaming services, 28 percent of respondents expressed displeasure.While content personalization and recommendations are of enormous value for video streaming providers and consumers, the industry has a long way to go when it comes to using AI in producing movies and shows. Although already integrated in production processes and tasks, the acceptance of this technology is still low and the fear of job losses high.
