AI video tools spark debate as brands embrace imperfect content

The news: The launch of OpenAI's Sora video generation tool has sparked industry debate about AI-generated content quality, just as brands like TCL begin experimenting with AI for commercial video production.

Sora's rocky debut: In addition to many widespread access issues, early users have reported significant challenges with motion quality and prompt execution compared with rivals like Luma and Tencent's Hunyuan, per VentureBeat (as well as our own hands-on analysis). OpenAI's content restrictions are further limiting even nonserious applications of the technology.

• The tool has launched with tiered pricing at $20 monthly for ChatGPT Plus or $200 monthly for ChatGPT Pro.
• OpenAI plans to enhance the tool's ability to emulate tone and emotion to address quality concerns.

This bumpy debut, after delays in September and earlier this month, comes as competitors like Runway have already secured major studio partnerships by better meeting expectations for Hollywood-quality content.

Brand adoption accelerates: TCL has released five AI-generated short films to promote its streaming service, using ComfyUI and Runway to significantly reduce production costs.

• Visual inconsistencies and audio matching issues are present but have been deemed acceptable by the company.
• Content decisions are being driven by user data to maximize potential ad revenues.
• At the films’ premiere, TCL explained that targeted advertising would both inform and fund the company's AI-generated content strategy, creating a “flywheel effect” powered by the dual forces of advertising and AI.

TCL is far from the only brand experimenting with genAI video; Coca-Cola recently released holiday ads relying almost entirely on the technology.

Market implications: There’s quite a bit riding on this shift.

• The entertainment industry is facing dual pressure to reduce costs while maintaining quality standards.
• Traditional production models are facing disruption as companies seek greater efficiency. Earlier this year, Tyler Perry put an expansion of his studio on hold after Sora was announced.
• Creators are expressing serious concerns about job displacement and creative authenticity.

Our take: The AI video generation landscape is splitting into two camps: those waiting for the technology to match traditional production quality, and those, like TCL, that are willing to accept current limitations in exchange for cost savings.

• While early adopters focus on efficiency, widespread implementation faces three key hurdles: proving commercial viability, gaining consumer acceptance, and finding the right balance between AI automation and human creativity.
• Success will likely come from hybrid approaches that enhance rather than replace traditional production methods.

This article is part of EMARKETER’s client-only subscription Briefings—daily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one—delivering the latest news and insights—are completely free through January 31, 2025. If you want to learn how to get insights like these delivered to your inbox every day, and get access to our data-driven forecasts, reports, and industry benchmarks, schedule a demo with our sales team.