Media has developed in tandem with technological innovations. Higher resolution TVs sell well to watch events like the World Cup and Olympics, and satellite broadcasting becomes widespread. Both manufacturers and the industry introduce new products in line with such events. Recording devices such as VHS and DVD have become a new source of revenue in the home video market.
If you have content assets, new technologies become lucrative when they emerge, giving rise to new opportunities for media. This is the golden pattern of Hollywood—the content window strategy. I found that I had written about such things before when I looked for them. It’s in Rock Media’s “Introduction to Content Window Strategy 1” (March 2008).
Since the 1990s, their growth has been riding the waves of technological innovations that occur every decade. In a previous discussion, I talked about the AI that generates videos in large quantities.
The question now is whether Hollywood can ride this wave again. The problem is that this innovation is happening not in the media but on the creator’s side. If the number of media (windows) increases, one IP can be used for multiple purposes. However, generated AI is an innovation in creativity, not in the media.
Since 2010, non-professional users, such as those on YouTube and TikTok, have flowed into the video market as creators. This time, there is a stronger trend in this direction—automation. When creators come from outside Hollywood, the window strategy doesn’t work as well. The pattern and structure of creators creating and business people selling will remain unchanged, but only the characters will change.
Instead of professionals, it’s YouTubers, Instagrammers, and AI. The money-making machine has moved from television to YouTube and then to short video apps. When considering such movements, the market structure of the video industry, which has been centered around Hollywood for the past 50 years, has the potential to fundamentally change.
ShortTV: The emerging short video app from China.
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