• by Wayne Friedman , Staff Writer, January 29, 2025

Shocking news -- if it is to be believed-- is that China-based DeepSeek has drastically lowered the cost for those who want to start up an artificial intelligence (AI)-enabled platform... perhaps around a minuscule $6 million.

For some time now, analysts have been saying that comparable U.S. based AI-platforms that can be produced for around $100 million.

That drastically shook up the marketplace, especially among those technology-based companies, including chip makers. Stock prices of those companies were crushed earlier this week.

But what effect, if any, did this news have on legacy TV, digital video, and independent streaming platforms? Not a whole lot -- so far.

While some targeted technology companies -- in particular chip-makers -- witnessed massive declines of 20% or more in their stock price, legacy media companies' share prices were virtually unchanged.

Still, the bigger picture for the entertainment industry is that AI will have a major effect in the long term -- not only in producing content, but in identifying trends and analyzing data from social media.

AI can also "de-age" actors -- something some TV and film producers have toyed with over the years.

Michael Ovitz, co-founder of CAA, speaking on CNBC on Tuesday, believes that TV/movie companies -- and especially their professionals in content creation -- will continue to be slow to adapt to new AI technology.

Some of this tepid AI adoption may be because still-young streaming platforms from legacy TV companies are now nearing -- or at -- profitability. Those companies might not look to make radical adjustments to how they produce content in the coming years.

Currently, TV consumers are demanding much more -- and the ways they can find and consume content continue to evolve. AI will lead them around, according to analysts.

In this regard, complacency should not be part of studios' genetic makeup -- especially considering the last decade and a half, when Netflix invested heavily and revolutionized everything.

And if the news is true about a seemingly chump-change $6 million cost for an AI platform, we should figure that some mid-level and aggressive TV-movie company will want to experiment in making content via virtual TV/a film producer that doesn’t need craft services.