The Flattening of Brand and IP Value in the Age of AI
As AI rapidly reshapes creative value, the ESPN and HBO Max branding decisions feel insufficient
The Medium identifies essential signals on how technology is shaping the business of culture, and how the marketplace is evolving in response.
In my recent presentation to PARQOR Platinum members, I walked through the concept of “flattening” in the broader marketplace.
AI is 'flattening' content creation by expanding the creator base from a few skilled professionals to anyone with internet access. Gavin Purcell, the co-host of the podcast “AI For Humans” and an Emmy Award-winning TV producer, predicted in a recent interview with The Medium that ”a bajillion more people will try these [AI tools]” and some will go viral. Virality happens because content distribution has also been "fully flattened": Any content creator can game YouTube, TikTok, Instagram and other algorithms to find new audiences.
That dynamic raises two difficult questions for the marketplace:
What will be the value of traditional media brands?
What will be the value of intellectual property (IP)?
In the past week Disney and Warner Bros. Discovery each offered answers to the first question. The content licensing and data marketplace offered some market signals to answer the second.
Key Takeaway: Even if directionally right, both ESPN’s streaming app and HBO Max require the operational and technological machinery to compete with an influx of new IP that audiences may perceive as having equal or better “quality” to content from their brands.
What will be the value of traditional media brands?
Both Disney and Warner Bros. Discovery recently made decisions with the belief that traditional television brands like ESPN and HBO will continue to have competitive advantages in streaming over both current competition (e.g., Netflix, YouTube) and future competitors (AI creators).