In the evolving landscape of streaming, YouTube and Netflix maintain their dominance while Amazon Prime Video positions itself as a strong contender. According to Morgan Stanley, Amazon could save billions in programming costs by utilizing AI, projecting a 10% reduction in expenses for scripted originals from a $24 billion budget by 2025. Most of this budget will focus on existing licensed content, with a smaller portion directed towards expanding sports offerings. While AI might decrease production costs by up to 30%, significant financial implications for industry professionals loom. As studios invest in AI tools, they will likely reallocate savings to marketing and sports rights, which are already surging in value—growing 10% annually. This shift could exacerbate bidding wars, particularly affecting networks like Fox and Disney. Consequently, tech giants like Amazon and Apple stand poised to gain as scripted content costs decline and sports rights escalate.
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