Netflix Adds Generative AI To Competitive Risk Factors in Its Annual Report (variety.com) 18
In a change that reflects AI's growing influence -- and potentially disruptive power -- in Hollywood, Netflix added generative AI to the list of potential risk factors on its annual report filed with the SEC. From a report: In Netflix's 10-K report filed Friday, it added this new section to the long section of risk factors (which are required under SEC rules) in the section about video competition: "[N]ew technological developments, including the development and use of generative artificial intelligence, are rapidly evolving. If our competitors gain an advantage by using such technologies, our ability to compete effectively and our results of operations could be adversely impacted."
Netflix also added this wording: "In addition, the use or adoption of new and emerging technologies may increase our exposure to intellectual property claims, and the availability of copyright and other intellectual property protection for AI-generated material is uncertain." Aside from those two sections, the risk factors on Netflix's 10-K for 2023 -- totaling some 10,000 words -- remained largely the same. To be sure, the changes here are very small, in the grand scheme of things. And keep in mind that these are all the potential risk factors that companies like Netflix must communicate to investors.
Netflix also added this wording: "In addition, the use or adoption of new and emerging technologies may increase our exposure to intellectual property claims, and the availability of copyright and other intellectual property protection for AI-generated material is uncertain." Aside from those two sections, the risk factors on Netflix's 10-K for 2023 -- totaling some 10,000 words -- remained largely the same. To be sure, the changes here are very small, in the grand scheme of things. And keep in mind that these are all the potential risk factors that companies like Netflix must communicate to investors.
Copyright protection status isn't uncertain (Score:5, Informative)
In the US the Copyright office has been VERY clear on this, machine generated content cannot receive copyright protections. AI prompts cannot receive copyright protection. Content that has mixed human and machine generated content must have the machine generated portions declared so copyright protection can be excluded from those portions.
The US Patent office is on the same page, patents must be human thought up and authored, full stop.
Re:Copyright protection status isn't uncertain (Score:4, Insightful)
The real threat to all these "content creators" isn't the copyright risks, it's the user's attention span.
These AIs promise infinite content, or at least the possibility for skilled individuals and teams to create more content and more easily. But users only have 24 hours a day still. They can only watch so much.
Streaming services ate TV's lunch and dinner, but armed with AI, every form of entertainment will be flooded with content. Who cares if it's infringing on copyrights if I, the user, don't care?
Re:Copyright protection status isn't uncertain (Score:4, Insightful)
When the day comes that I can watch whatever I want because I just ask my TV to make something for me, to my specifications and on demand, that's the end of the studios, the end of distributors, the end of theatres.
And probably it'll kill merchandising, too, because there will be no big behemoth property everyone wants at the same time. At best, it'll be sharing your favourite prompts with a group of people you know - grassroots / word of mouth will be the way things become popular, not a studio PR campaign.
I imagine the media empires are extremely nervous.
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When the day comes that I can watch whatever I want because I just ask my TV to make something for me, to my specifications and on demand, that's the end of the studios, the end of distributors, the end of theatres.
Depends. I mean, assume you work it like holodeck on Star Trek. You still had to do quite a lot of specs. Setting, characters, some overarching plot.
"Give me a fair-play whodunnit story that lasts two hours".
- "Ok, what time period?"
- "80s"
- "What setting?"
- "City"
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When the day comes that I can watch whatever I want because I just ask my TV to make something for me
That is a long way off.
What will happen first is a small team of people with an idea will use AI to improve the script and then craft the prompts to guide the AI in generating the imagery. The cost of creating a film will go way down.
This will damage the studios and maybe put them out of business.
But streaming channels might become even more profitable. Netflix can generate more of its own content without paying licensing fees to the studios.
I imagine the media empires are extremely nervous.
They need to adapt. But that's hard to do when they have empires t
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That's the thing about AI, it can't really create new things. You might think Hollywood is repetitive, but compared to AI it looks like a fount of innovation!
Keep those expectations low.
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>In the US the Copyright office has been VERY clear on this, machine generated content cannot receive copyright protections.
Cynical me assumes this is because AI-assisted content generation threatens the wealthy, established players with the potential of allowing poor people to produce similar output to the studios of the wealthy.
While people new to the industry working with zero budget are probably very enthusiastic about it, I assume the people making billions off of multi-million dollar investments do
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There is always going to be some human input, beyond the case of somebody claiming "none" just to prove some sort of point.
Even if the labor hours needed to produce what is today a big-budget superhero movie is slashed by 99.9%, it will still be under copyright.
If nothing else, you would hold the copyright for the characters in your film - the same thing that gets fanficti
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Look at existing instances that have already been through the system: Artist worked at a prompt for awhile to create a base scene with Midjourney, then went in after and did some moderate adjusting with traditional tools ala Photoshop, etc. Copyright office said no go. Look up "Theatre D'opera Spatial" for the details. The graphic novel "Zarya of the Dawn" has also had the copyright denied for the images in the graphic novel because again, machine generated.
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Lots of Netflix Shows seem like Generative AI now (Score:3)
Granted, I'm old enough to remember the straight-to-video copycat clones of hit horror movies that flooded our local video store...and all of us kids loved it. I hope other people love it. However, my time is limited, so I am more demanded of what I watch now than when I was 12. So what will Generative AI do?...generate more derivative scripts?...more copycats of hits?...attempt to mash together what the audience likes (which honestly describes most Netflix Movies now).
AI is going to kill us all, remember? (Score:2)
The latest Doomsday Clock update https://thebulletin.org/doomsd... [thebulletin.org] includes AI as an "existential threat" to humanity. If everybody dies, it's definitely going to hurt Netflix's bottom line!