I have written about this thesis before — more than once. But the idea continues to feel underexamined relative to its inevitability, so it warrants another articulation.
The next and likely final wave of consolidation in Hollywood will occur when technology companies — most probably those leading the development of generative AI — acquire the major studios outright. When that transaction happens, it will mark a fundamental shift in what a studio is. Rather than functioning as content production engines, studios will become intellectual property holding companies. Their value will lie not in the films they produce, but in the libraries they own.
The mechanism is straightforward. As AI-driven personalization tools mature — what Apple once called the Knowledge Navigator, and what will almost certainly emerge under various names in the coming decade — individual audience members will be able to generate bespoke, hyper-personalized versions of existing intellectual property on demand. The studio’s role will be to license the raw material. The audience’s role will be to shape it.
Within twenty years, this model could turn a single actor’s filmography into an infinite creative substrate. Consider Harrison Ford: audiences will be able to generate an unlimited number of new performances featuring a young Ford in variations of his most iconic roles — or in entirely new scenarios built from the same DNA. The original films become source code rather than finished product.
This outcome may, paradoxically, resolve the fatigue audiences currently experience around franchises like Star Wars. The expanded universe contains hundreds of secondary and tertiary characters whose stories remain untold in any feature-length form. Under the current studio model, most of those stories will never be greenlit. Under an AI-personalized model, any audience member who wants a feature-length film centered on Dengar or Nien Nunb can simply commission one.
That, in essence, is the future of Hollywood.
One significant question remains unresolved: what happens to the human beings who would otherwise have become movie stars?
My view — which I have articulated in various forms across several previous posts — is that their primary stage will shift to Broadway and live theatre. The theatre will become the venue where new stars are born, where audiences discover the charisma and presence that no algorithm can fabricate. Live performance will serve as the audition reel for a new kind of celebrity.
The economic model will follow accordingly. Emerging performers will eventually undergo full-body digital scans, licensing their likenesses for use in AI-generated content. The passive income derived from that licensing — their digital selves appearing in thousands of personalized films — will constitute a substantial and ongoing revenue stream, potentially exceeding what any single theatrical run could generate.
I recognize that this argument has, to date, found a limited audience. I have made it repeatedly, in various registers, and it has not yet gained traction. Perhaps one day it will.
