Consultancy Firm Warns of Gen AI Impact on Film and Animation Jobs
Gen AI report spotlights : CVL Economics’ recent report indicates that Gen AI could cause more job losses in the film and animation industries than any other sector. Their January 2024 survey of 300 leaders across six entertainment industries shows that 75% believe Gen AI tools contribute to job loss or reduction within their divisions.
- Consultancy Firm Warns of Gen AI Impact on Film and Animation Jobs
- Sound Designers and Music Professionals Feel Gen AI’s Impact
- Gen AI’s Role and Its Long-term Impact
- Job Cuts Loom as Industry Giants Announce Layoffs
- FTX Legal Woes Continue, Former SEC Official Investigate Profit Motives
- FTX Legal Team’s Profits Raise Concern
- FTX Seeks to Sell $175 Million Claim Against Genesis Global Capital
Sound Designers and Music Professionals Feel Gen AI’s Impact
Report results demonstrate that 55% of industry leaders anticipate sound designers will be the most negatively affected in three years by AI advancements, with over 40% showing concern for music editors, audio technicians and sound engineers; another 40% expressed worries for music editors, audio technicians and sound engineers while 33% projected impacts for songwriters, composers, studio engineers. These results come after the Writers Guild of America (WGA) and SAG-AFTRA strike in July 2023 due to fears AI would replace traditional roles within their industries.
Gen AI’s Role and Its Long-term Impact
CVL Economics’ report revealed that 47% of business leaders expect Gen AI to produce 3D assets and realistic sound design for movies, television, and video games in three years, 44% believe Gen AI can produce convincing foreign language dubbing, while 39% anticipate Gen AI producing music mixes and masters by 2026. While contract negotiations remain positive among WGA/SAG-AFTRA members regarding its potential impact on film and television industries.
Job Cuts Loom as Industry Giants Announce Layoffs
Riot Games, Unity Software, Amazon MGM Studios Pixar Universal Music Group have already made headlines by announcing layoffs, signaling further job reductions within the entertainment industry. CVL Economics predicts that developments in Gen AI technology may exacerbate this trend and add even greater challenges to professionals working within these sectors.
FTX Legal Woes Continue, Former SEC Official Investigate Profit Motives
John Reed Stark, former SEC official, raises doubts about FTX’s restructuring plan as an opportunity for its legal team to profit from bankruptcy proceedings; Stark joked about each legal team member potentially affording their dream beach house by 2024. Unfortunately, after considerable efforts on behalf of both legal teams involved, Andy Dietderich confirmed there are no plans for relaunching FTX 2.0 within Chapter 11 bankruptcy framework.
FTX Legal Team’s Profits Raise Concern
Documents reveal that FTX’s legal and advisory fees totalled an average hourly fee of approximately $53,000 in the quarter ending Oct 31 2023, according to court-appointed fee examiner findings. Their bankruptcy legal team charged at least 118.1 million from August 1 to Oct 31, 2023 (an average daily charge of around $1.3 Million or an hourly average fee of $53,300 over 92 days), although this amount was considered “not wholly unreasonable”. These figures raise serious concerns over its costs as well as potential motivations behind their restructuring plan being considered by court-appointed fee examiner, however.
FTX Seeks to Sell $175 Million Claim Against Genesis Global Capital
As part of its efforts to recover from its collapse in November 2022, FTX has filed a request with Alameda Research’s claim holders, Genesis Global Capital’s bankruptcy trustee. If approved, FTX could sell all or parts of this claim, strategically timing sales according to market conditions. FTX collapsed following irregularities discovered within its accounts with Genesis having $175 million held up at that point in time within its account with them.
