AI on the Lot and The Crazy Box Office Weekend

3 Jun 2026 · 45 min · 21 chapters

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In short

The episode is about what AI on the Lot signals for film/TV creation and how AI tools are changing production workflows, plus a “crazy box office weekend” that highlights low-budget horror and breakout indie hits. Hosts discuss the “YouTube generation” of directors (YouTube as a Sundance replacement) and argue AI won’t eliminate jobs because taste and creative control still matter. They cover Amazon MGM’s GenAI Creators Fund (3 animation shorts) and its internal pipeline tool “Project Nara,” plus Drumeena/ByteDance’s agentic ideation tool “Octo.”

Key claims

AI is becoming usable in production pipelines; backlash misunderstands AI’s role (in-betweens/assistive tools, not instant filmmaking); studios want more output with the same spend; audiences may crave “handmade” standouts amid automated noise.

Notable examples

Backrooms (Kane Parsons), Obsession (Curry Barker), Amazon shorts Punky Duck (Jorge Gutierrez), Love, Diana Music Hunters (Albie Hecht/Pocket Watch), Cupcake and Friends (BuzzFeed Studios), and Drumeena Octo.

Guests

none explicitly named; hosts are Addy and Joey.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

Tap a time to open that second in VO

Reflections on AI on the Lot

0:27 to 1:47

Discussion of the recent AI on the Lot event, its growth, and atmosphere.

“But yeah, everyone's like, how was AI on the lot?”

The Importance of AI in Production

1:47 to 3:17

Exploration of the significance of AI in the creative industry and its acceptance.

“So I get a text from a friend from Netflix and he's like, hey, are you on the lot?”

Amazon MGM's Gen AI Creators Fund

3:17 to 4:19

Overview of Amazon MGM's new Gen AI Creators Fund and its projects.

“I think it's not going away in the sense that people are really being warmed up to how usable it is and how it actually shortcuts a lot of things that you didn't think were valuable.”

Controversy Surrounding AI in Animation

4:19 to 5:45

Discussion of backlash against an animator using AI and the implications.

“Yeah, so the three projects, and I'm not too much in the animation field, so I did not know any of these people, but I know George.”

Project Nara and AI Production Tools

5:45 to 8:08

Insights into Amazon's Project Nara and its potential impact on production.

“I don't know if there's rumor, Bill, or not, but I heard he was receiving death threats.”

Amazon's Approach to Live-Action and Animation

8:08 to 12:45

Discussion on Amazon's strategy for investing in animated and live-action projects.

“Well, at least for, I would say, you know, like a step below a Pixar Disney DreamWorks level feature.”

Drumeena and AI Workflow Innovations

12:45 to 14:01

Exploration of Drumeena's new AI tools for creative workflows and ideation.

“I think it's, yeah, like small bets now, see what works, validate the pipeline.”

Exploring Luma Agents and AI Models

14:01 to 17:22

Learn about the capabilities and functions of Luma agents in generating content using AI.

“It's powerful because C-Dense, as you know, already has multi-shot capability within it from one single generation.”

The Role of AI in Creative Processes

17:23 to 20:08

Understand the advantages and limitations of using AI for creative tasks and scriptwriting.

“it actually is, I think will come down to how capable they are.”

The Evolution of the Media and Entertainment Industry

20:09 to 22:38

Discuss the shifts in the media landscape and the return of industry professionals to AI-focused startups.

“Yeah, just a quick shout out to a couple of our fans who I met in person.”
Show all 21 chapters

Trends in Studio Production and Budgeting

22:39 to 24:38

Explore how studios are adapting their budgeting strategies in response to changing market dynamics.

“And like, OK, maybe the cruise will be smaller, but there'll be more stuff happening.”

Analyzing Box Office Trends and Horror Success

24:39 to 28:00

Examine the surprising box office performance of recent low-budget horror films compared to major franchises.

“And I think that's that was the common vibe.”

Franchise Fatigue and Originality Craving

28:00 to 30:20

Exploration of the current state of film franchises and the audience's desire for originality.

“The world is really upside down, isn't it?”

The Power of Star Wars Lore and Fan Expectations

30:20 to 32:00

Discussion on how adapting existing Star Wars lore could satisfy fans and improve future films.

“Well, they have got another movie, that Ryan Gosling movie coming out next year.”

Rise of YouTube Directors

32:00 to 33:50

Analysis of how YouTube has created a new generation of filmmakers and their impact on the industry.

“We went from like the Sundance generation in the 90s and 2000s and the launch of those directors.”

Changing Dynamics of Film Production

33:50 to 35:50

Examining the shifting landscape of film production and the role of YouTube in new director success.

“And then I signed a deal with Amazon that is bringing the Mr.”

Film Festivals vs. YouTube Distribution

35:50 to 38:10

Comparing the roles of traditional film festivals and YouTube in promoting new films.

“But with the two director guys, it's like I feel like they're more, it feels more like YouTube as the replacement of Sundance.”

Theatrical Releases and Audience Trends

38:10 to 40:00

Impact of new films on theater attendance and the evolving audience demographics.

“But, I mean, I don't know if you, like, I was looking at theater maps and stuff, because I did see Obsession this weekend, and it was harder to get a ticket for that.”

Indie Films and the Future of Hollywood

40:00 to 42:04

Exploration of indie films' role in Hollywood and the potential for funding smaller projects.

“I wonder if these guys used any AI at all in their sort of early concepting.”

The Evolution of Movie Genres

42:04 to 43:39

Explore the changing landscape of movie genres and the resurgence of comedies.

Nostalgia for Early 2000s Films

43:39 to 44:05

Reflect on the overlooked value of early 2000s films and their resurgence.

“And I think Scary Movie 1 is one of them.”
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Transcript

Automatic transcript. May contain errors.

0:00Joey:It's been this headline-y thing of like, okay, it's the YouTube generation of like directors this year. We went from like the Sundance generation in the 90s and 2000s and the launch of those directors. And then now it's this like YouTube generation. I think there is like some distinction there though, when we think about this, because YouTube is also so massive and the creator economy is so massive. And what do we mean by that? And what could take away from that?

0:27Joey:Welcome back to Denoised. Addy, how you doing? Good to see you, sir. Yeah.

0:32Addy:I barely saw you at AI on the lot. Last week.

0:35Joey:Exactly. But yeah, everyone's like, how was AI on the lot? And I was like, I was in the back rooms of Culver Theater for two days straight. So I only saw the after party stuff.

0:45Addy:I was doing the fun part for you, just schmoozing with everyone. How'd it go for you? It was, man, shout out to Todd and the AI on the lot team, Corinne. And this year was so much bigger than last year. As you know, you were there, barely.

1:06Addy:The team took over three or four different studio lots, including Studio 15, which is the big Amazon giant volume. A lot of the keynotes were there. And it's not just about the size. Of course, there was thousands of people. The entire thing was sold out. But it still felt really intimate. And you still knew everybody. the technical sessions were still relatively small where you can ask questions people were well fed and sort of there's stuff to do afterwards before and yeah it's like the it's like the opposite of nab or ces where it's like this giant corporate thing this feels like it's homebrewed but at the same time it is getting bigger and uh yeah we'll see how what happens but i really enjoyed it yeah

1:47Joey:i mean the one comment especially people that have been in previous years was like it just keeps getting bigger and bigger and this was like the biggest i think 2 000 people at its peak yeah we're there which is which is crazy but yeah no i mean todd's pulled off a great event mike ames kelly the whole team uh shout out to ames yeah if i see ames in a headset you run me in the other direction i'd have to call her some stuff and i'm like this feels so low with what other stuff she's dealing with i feel bad calling her i know uh but no they're great and but yeah To your point, it's like everyone involved in AI in some respect is there.

2:25Addy:Yeah. And even like I met a lot of people. So I get a text from a friend from Netflix and he's like, hey, are you on the lot? I'm here. And I was like, yeah, sure. So we meet up by the coffee and the coconut. You know what I'm talking about. And he's like, look, I know nothing about AI and that's why I'm here. And that is my point. It's like if you don't know anything about AI, it's not too late to just come in cold. I think that's a great event for you to just come in cold, look at the panels, meet people, get a gauge on things. So I thought that was really interesting that we're still having a lot of entrances into this industry.

3:00Joey:Well, I think that's the big I think that's kind of a common theme. It's sort of the big turning point this year compared to previous years where there's more things actually in production using AI. It's more open. And it's also kind of clear that it's here. it's coming it's not going away it's not like it's proved itself in some capacity it's only to keep getting better and so anyone that was on the fence about it is now like okay i gotta like figure out what the deal is about this yeah and and i gotta figure this out yes

3:33Addy:uh to make your point about it's not going away like it's not a bad thing like like that one quarterback who keeps coming back to high school even though he's uh graduated like it's not going away in that sense. I think it's not going away in the sense that people are really being warmed up to how usable it is and how it actually shortcuts a lot of things that you didn't think were valuable. And now you're finding that it is actually quite valuable. So I think in that sense, it's not going away because it's just really eye opening how valuable certain aspects of AI are.

4:06Joey:All right. We're going to talk about some of the bigger announcements that happened at AI on the Lot that came out of it. First one, opening one, Amazon MGM. It was at Amazon MGM. They were the hosts. So they kicked it off with their big announcement, which was a new Gen AI Creators Fund, which, undisclosed amount, but basically they're kind of funding, piloting three different animation projects and then also talked about the announcement of their internal pipeline tool that they've been developing that is supposed to kind of put Gen.AI in a usable pipeline for creation or development of projects, starting with animation, but then also developing or working on a live action short or pilot.

4:50Yeah, tell us about the three projects. Yeah, so the three projects,

4:54Joey:and I'm not too much in the animation field, so I did not know any of these people, but I know George. Is it George or Jorge? I believe it's Jorge. Is it Jorge? Okay. Yeah. But Jorge is a famous animator and has a big following. And so the announcements were Jorge Gutierrez was doing a short called Punky Duck. The second one was by, yeah, Albie Hecht at Pocket Watch, creating a short called Love, Diana Music Hunters. And then the third one was by BuzzFeed Studios called Cupcake and Friends. Now, the one that took most of the attention and a lot of heat was Hortense Gutierrez. He got a bunch of online backlash and hatred for partnering and using AI in animation.

5:42Joey:And then he ultimately dropped out of the program.

5:45Addy:Dang, that's crazy. I don't know if there's rumor, Bill, or not, but I heard he was receiving death threats.

5:50Joey:I think he posted. I mean, not only him, but his family. I think he might have been getting doxxed. Yes. His kids. So like, I mean, that's just creepy and just like, you know, just unacceptable. And I mean, for people to get so upset about that and also just the complete lack still of understanding of like what this means. And there's just still so many misconceptions of like, what is he going to sit at a computer and type out, make me an animated film and then get something. and it's like no it's it's it's using it as the in-betweener using it in conjunction with him his team his talents developing the characters and just making something that would be too expensive to do otherwise most likely or not get funded uh and to do it at the same quality level that he did before but using tools to speed up that process and i'm assuming you know just do it with a smaller team that can get funded anyways that's the nuance we know this online mob uh you know does not like nuance and just the fact that they just like have death

6:46Addy:threats and all this crazy stuff it's just yeah i mean look it's an animated movie guys it's it's gonna be about farts and like silly things like there's no need for that level of uh like escalation the other thing i'll say is um there's look he's not the first ai director to be publicly be attached to a big, big budget project. Of course, we talked about Darren Aronofsky, and there's a couple of other big Hollywood directors that are tied to AI films. I think what his, now I could be wrong here, but I think what I heard was he was very anti-AI and a staunch opponent of AI previously, and then he essentially switched his stance.

7:28Addy:And I think that is what caused a lot of the backlash. But nevertheless, that doesn't justify any of the death threats and threats against his family. That's far too excessive. But I think there is some nuance to that as well.

7:42Joey:No. And I mean, also, if you're like, okay, he was an anti-AI person before, and then he does change his view, then wouldn't that bring more curiosity of, okay, what did he see? Or why did he decide to change?

7:53Addy:Yeah. You're allowed to change your mind, right?

7:58Joey:You're allowed to have a preconceived notion, but then find out more information and change

8:02Addy:your opinion exactly yeah i thought that was um that's quite alarming going back to the amazon slate though it feels like they're kind of i don't know they're copying netflix a little bit the second project screams k-pop demon hunters uh as i read that i was like wait is this a k-pop demon hunter thing but i guess um it does make sense that even though the initiative is for both live action and animation they're starting with animation because as we all know animation is going to be a lot easier, relatively speaking, to get to a final quality than live action is. Yeah, we know it's pretty much there.

8:36The tools are pretty much there.

8:37Addy:Yeah. Well, at least for, I would say, you know, like a step below a Pixar Disney DreamWorks level feature. Like if it's a feature film that's made by, you know,$10 million by a studio in China or a studio in India, I think that's a tier two quality. And that is probably achievable by AI today. But the tier one where it's like Toy Story 5 or whatever, that is still, I think, a couple of years out.

9:06Joey:And so their internal tool, AI production platform, it's called Project Nara, and being made available exclusively to creators, the company describes Project Nara as a collaborative workspace designed for teams that integrates AI production agents with production tools creators already use, such as Maya, Blender, Nuke, Unreal, Adobe, Suida products. It is built around a model agnostic architecture.

9:27Addy:This reminds me of Nimble Studio, which was AWS's version of a studio in the cloud. Maybe it's evolution of that. Yeah, maybe it's some bits and pieces of that with a new AI tool set built on top of it. But I can bet money on this that whatever Amazon is thinking is heavily, heavily based on AWS capability and it's its giant cloud play for them.

9:50Joey:Oh, yeah. They're officially a partner in this too, which, I mean, obviously makes sense. Obviously, yeah. studio with the biggest cloud platform and tool set so why would you not leverage that which is

10:01Addy:actually joey it's also uh interesting because a lot of studios because of ethics concerns and privacy concerns and as you know ip is super secretive stuff they kind of want to run ai inside of their four closed walls you know and um like even though this tool may be built for amazon i don't know if this is conducive for the way other studios think and operate so if they're looking to expand beyond Amazon and just kind of like offer this tool set to other studios, it may not be set up correctly for that. Just to guess.

10:34Joey:Yeah. I mean, if they want to eventually test Project NARA and then offer it as a service thing on AWS, sort of like Bedrock, maybe, but this is such a small market and that's such a bespoke pipeline system that, you know, I don't know if it would make sense that that would be a self-serve deployable product, But maybe there'll be elements there that do. Who knows?

10:56Addy:And I know a lot of other studios are working on getting like Maya and Blender and Unreal and all of our favorite tools up on the cloud. But do you really have to? I mean, come on. Like, they work on the desktop just fine.

11:09Joey:I mean, if you're a cloud provider who sells virtual machines, that yes, you would say, yeah, sure, why not? Of course you wouldn't. But yeah, cloud costs can get pretty pricey.

11:21Addy:So, yeah, I mean, we're at like, yes, GPUs are expensive, but on the flip side, workstations, professional workstations are super affordable now. Like anybody can power a decent Unreal or Maya rig at home better than they could ever before.

11:36Joey:And the other thing, too, is that this feels a little bit like when Amazon Prime first kicked off where they're just like, we'll just do pilots and then kind of see what works. All of these funds, the genetic creator funds, the grants of creators to make proof of concept pilots and shorts. The studio then decides which of those to greenlight in a full project. So they're just doing one-off episodes right now. And then in addition to the animated series, Amazon MGF Studios is working with another creator developing a live-action short. They declined to identify who. Live-action short. We've seen that pipeline already that they've talked about with Moses, you know, and John Irwin's project.

12:12Joey:House of David. Is already... No, House of David was the one, but then Moses was the other series with Ben Kingsley that they just promoted that was the hybrid shot on the volume, Gen AI backgrounds, but also shot people and used motion transfer for performance capture. So we've already seen them do this publicly. I'm assuming it's going to be a similar-ish workflow.

12:34Addy:Yeah, I'd be curious to see the live action short. And it's interesting that that's a short and not a feature length or episodic length. They're just investing less into it than they are with animated stuff.

12:46Joey:I think it's, yeah, like small bets now, see what works, validate the pipeline. And then when you're like, okay, it works, then it's like, okay, go, go do it. Go make the full thing. Yeah. Other big announcement was from Drumeena, which had a big presence there. Drumeena is ByteDance's like public facing platform to use Seedance and Seedream and all that.

13:07Addy:It's like the Google Flow equivalent of ByteDance, yeah.

13:11Joey:Yeah, exactly. So they announced Octo, which was sort of another agentic workflow tool that kind of, I think we've been seeing this trend more and more with more tools where it's a chatbot that sort of lives in the platform, canvas based. And then you start describing what you want and it starts either figuring out if it needs to make images, videos, if it needs to make character sheets first and then make the video. So, yeah, they launched their own version that runs on the platform and also is tied into C-Dance.

13:39Addy:Yeah, this is to help with the ideation phase before you actually start to make anything. It's like, how do you hash out a story? How do you fully develop characters? How do you figure out...

13:50Joey:It's a way to make stuff, too, if you're fully making an AI project. It's making images, making videos, and figuring out the stuff you need to make that.

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14:01Addy:It's powerful because C-Dense, as you know, already has multi-shot capability within it from one single generation. And if you tie that with an agentic front end, you can potentially have like a very fast velocity output to have entire sequences done in one go.

14:20Joey:So, yeah, that launched. I spoke with we talked about this when they announced it, the Luma agents. And we were like, what is it? Right. What is this? Exactly. So I spoke to them a bit. And the thing that was interesting about Agents was, and it wasn't clear at first, was it is model agnostic. So it is a separate platform. And it seems similar-ish to Octo, but same idea where you have a chatbot, you can talk to it, tell it what you need. But then it is supposed to figure out what the best model is for what you're trying to do. And it'll call up and use that model. So I thought it was just entirely working on Luma's platform or Luma's different models.

15:03You think it's like some elaborate just cloud skill or something? I think at the core, a lot of these things are.

15:11Joey:I mean, it's just a chatbot. Like a Gemini gem. A lot of like pre-baked stuff of like how to write based on the model, how to structure the prompt or how to choose the prompt. I think it's a lot of like instructions under the hood that's just calling up different things. Yeah. It's like a giant context window. Yeah. I just wasn't aware that Luma's agents also worked with other models. I thought it was kind of keeping you on their platform.

15:30Addy:Well, that's smart. That's smart of them to do, right? They see the agentic product as something that could sell outside their own ecosystem, right, if it's good enough. So, you know, it's a smart move.

15:42Joey:Yeah, yeah. So, I mean, we've been seeing this kind of coming to every tool, like some sort of agentic sidekick thing. So we've got Dreaming Opto, we've got Luma agents, we've got Flow agents.

15:54Addy:But it's also like kind of built in. Like if you look at Google Omni, like it has some of this agentic reasoning behavior built in. So, you know, you say something really vague, like make me a commercial about a water bottle from France and it'll make you like a 10 shot, 30 second commercial. And it's going through it, devising what each of the shots are, what the initial frame of those shots should be, and then generating each shot as a video and then editing it all together, then generating sound. And like some of them are baked into it and this is sort of separated out. I'm not sure which is better.

16:29Addy:I don't know.

16:30Joey:yeah i mean i still think if you're just going directly to the model and giving it a prompt versus this sort of orchestration which i think if you kind of have been in this for a while and know what you're doing like you can piece the things together but if you don't know but also if you're just trying to do like things quicker it will like i gave that example with flow where it's like okay create like 10 shots of a dude in a field but from different angles and so it made it knew that it needed the consistency so then it made reference images of the person reference images of the field first, and then put those two together to make the shots.

17:00Joey:And so it deconstructed the process that it needed, where if I just typed that into Gemini, it would just give me 10 different images. If that, it might just give me one image of a guy in a field, but it would give me 10 completely different images of a different person, different fields. And so these agents help guide that with all of the elements that you need to do the thing that you're trying to do. Yeah.

17:21Addy:The proof will be in the pudding. How useful it actually is, I think will come down to how capable they are. It doesn't understand.

17:27Joey:I have messed with a little bit of Luba agents and some things worked kind of cool and other things I was like. Right. It's just like any other, like you put an LLM up against the real world problem.

17:38Addy:I think it is really good at being a knowledge base, right? Like if you want to look up, I don't know, the GDP of Brazil from 2014 versus what it is today, just for inflation, like it's good at doing that thing. But when you ask it to come up with the emotional tone for Act 2, that's uncharted territory.

17:57Joey:Yeah. And I think these things are good at, you know, like if you're trying to create a lot of options quickly, batch options. Yeah. Very good at that. Yes. You can understand that. Yeah. But if you're like, give me this character arc. Yeah. I think it is actually useful.

18:15Addy:So, you know, obviously not a writer, not a developer. But if you have a core idea and you want variations of it, like 10 different variations on like the 10 shots and just see how each one of them flow. This is a way to get quantity up, like volume of stuff up real quickly. But to actually ideate and like turn a spark into a fully fleshed out script. I don't know if that will ever be AI, to be honest, or should it be AI, right?

18:43Joey:Or you're just going to get, I mean, if you do use AI, you're just getting the average of everything. And it's like, sure, whatever. If you're trying to churn it out, you're doing the millionth vertical short, then maybe it doesn't matter as much. But yeah, if you're trying to do something obsession or back rooms.

18:59Addy:I have a friend who just started as a creative director at a micro drama startup. And I think he'll take offense to that because he puts a lot of thought and energy into each micro drama he makes. Like it's not automated by any means.

19:14Joey:No, and I mean, those things take a lot of gaming design to just structure the stories and keep you, hook you, and then like, give you enough and then like, get you on the hook enough to then turn out money to find out what happens. So yeah, I'm not trying to diss the verticals. But if they start scaling up, because there was a lot of talk of just fully AI-generated verticals. And so if they're like, OK, we want to scale that up to making a bunch of different verticals and different genres, probably going to have generated scripts in that realm. Yeah.

19:47Addy:The more I look into this territory, this is a really interesting stuff like Dreamina and Luma Agent and, you know, like even Google Omni to some extent. The more I look into the pre-generation part of the pipeline, the more I'm convinced that we're not going to lose our jobs. You absolutely need people.

20:07Joey:Yeah, at the core of all these, you still need people that have taste and know what they're doing to control this stuff. Anything else with AI on the watch?

20:13Addy:Yeah, just a quick shout out to a couple of our fans who I met in person. It was such a pleasant experience. And of course, I told them the most cliche thing. I was like, thank you, but like and subscribe. okay and i i even draw i was like joey would like that too so do it

20:30Joey:but i have never told someone that in the real world so that's all i use yeah and then uh met

20:37Addy:up with matt workman shout out to matt um finally met him in person uh man met so many people that i i have not seen in like five years sometimes 10 years and now they're boomeranging back into ai so So when I left the studio world about, you know, almost 10 years ago, a lot of them were in like diverting into what I would call like consumer technology, like, you know, Instagram and Meta and TikTok and like those companies. And now they're fully boomeranging back into AI startups within big studios. So, for example, the Amazon one and there's others. Right. So like there's all these incubations happening at the same time.

21:20Addy:And a lot of those people were at AI on the lot. Yeah, people just coming back.

21:24Joey:Yeah. Were they out of the industry entirely or were they just sort of like on the fence? I think, yeah. Pause period because there just wasn't a lot happening. But now there's like stuff happening again. Well, this predates streaming, right, 10 years ago.

21:37Addy:But like the shift away from box office revenue into non-streaming revenue or cable revenue and all this other stuff. Like this started to erode away our business a long time ago. And I think a lot of people back then saw this as a sign to kind of just take their M &E knowledge and take it to other industries. So like there's people at Apple who are doing 3D renderings of their pods right there from their modelers and riggers from animation studios. Now that there's so much energy and investment back into M &E, they're kind of a couple of them are like coming back. So I thought that was really interesting.

22:16Joey:Yeah, good. I mean, I think that was a trend or, you know, like talking to people are kind of most of the common trend by 80 percent of people. It was like no one wants to spend less money. It was more like we want to spend the same money, but we want to get more out of it. So it was like, yeah, we want to spend 100 million, but we want to get 10 films out of that instead of one film as an example. But like that was the general trend. And like, OK, maybe the cruise will be smaller, but there'll be more stuff happening. So there's more, there's still like equalish amounts of work. That's the optimistic view and hopefully, and that's, but I mean, in general, that's what even like just kind of studio people were like, we just want more stuff with the same money, not less stuff.

22:57Addy:Yes, I agree with you. I'll take it a step further. I don't think it's about saving money because the studios just want to hit and they know that spending a hundred million dollars is not going to get them a hit. So the way to kind of, it's a big gamble. Right. It's a big game. And that kind of segues into our next segment. Yeah, we'll talk about next. You know, it's like, okay, if$100 million is not going to guarantee me a return on my investment, then can I do 10,$10 million things? And then one of those will hit to$200 million, and it pays for everything, and it makes me revenue. Right? So they're like at a blackjack table, and they're doubling down and tripling down, you know?

23:36Addy:That's what it feels like. Oh, you like that? Yeah, and the other ones too. Yeah, it's a good gambling. That week you were in Vegas, Joey. Yeah, and the other ones, they don't have... Yeah.

23:47Joey:You mean the two weeks I was in Vegas. Two weeks too long. Yeah, and the other ones, lower bar to be, you know, at least just break even. And then if they take off, cool, great, awesome. Then you get another obsession with backwards.

24:00Addy:And the other, I think the far more valuable thing for a studio is not sort of day-to-day profit and loss. Like, they can sustain the hits. Obviously, we see this with Disney's and Warner Brothers. They take$100 million loss, no problem. The reason they can do that is because they have the IP library, which is recurring revenue for them in the form of toys or licensing, what have you, right? So if their chances of hitting gold with new IP with$10 million shows increases by 10x, they want that. And if AI gives them that, they'll invest in AI.

24:37Joey:Yeah, completely. Yeah. And I think that's that was the common vibe. There are a couple other vibes that were all commercials are going to be generated and we're not going to have any production for commercials. I heard that. That was that was the buzz around the lot.

24:50Addy:Yeah. Well, I think a lot of commercials will be automated for sure. And then there will be this this snooze fest that will happen with the public where we're just going to be nundiated with automated content that we're just going to kind of snooze on that stuff. and what we're going to seek out are the special handmade stuff. Like think of the Super Bowl commercials. Like how much, like I don't even watch football, but I tune in for the Super Bowl commercials, right? Because those are works of art sometimes.

25:20Joey:Yeah, I think if it might stand out, then it'll be like some bespoke.

25:22Addy:So our appetite for handmade content and sort of curated, artsy stuff will only go up as we get more and more inundated with automated content.

25:32Joey:Yeah, it'll stand out from all the noise. There's just going to be a lot more noise coming out. OK, we keep hinting about completing this. So let's talk about this. This is usually not our foray, but let's talk about box office this weekend, because I think there are things to extract from this that also tie into AI and hybrid production and just the future of content and media creation. Crazy box office weekend started last Wednesday when Obsession on Wednesday, I think it was, beat out that day in the box office Mandalorian. And then it just kept going. And by the end of this weekend, box office totals, Backrooms, which came out, was a$10 million budget.

26:09Joey:It made$81 million domestic in the U.S. Obsession, third week out, has increased every single week. It did$26 million this weekend. And then Mandalorian and Grogu came in number three,$25 million. Yeah, and the Obsession budget is ridiculous. It was$750 ,000. Obsession was$750 ,000. That's just nuts. Factor in. Look, I'm sure everyone did. I think everyone was paid minimum rates and like favors and stuff. So like, I always want to like, when you hear those numbers, I always, you don't want to take them as like a model of like, we can make everything for seven 50 that was, you know, calling in favors and one offs, but still very low.

26:47Joey:And it's going to make at the end of the day, probably 200,$300 million in the box office.

26:51Addy:It's like the Blair witch moment from 20 years ago again. Yeah. And it's funny that the horror genre is winning right now. And we all know why it's because of the current climate, you know, You know, you can't like horror has the highest rate of return on a small investment, more so than comedy movies, which, you know, which have historically declined to the point now where we hardly see a comedy opening anymore. Horror has a built in fan base and it just it just kind of returns on investment in a very predictable way. So unless you're making a hundred million dollar movie, your second best option is to make.

27:28Joey:But these are still like outlier hits. like big outlier hits even for the horror genre yes yeah you're absolutely right but in general

27:36Addy:like looking back uh over the past five years since the pandemic uh some of the biggest horror movies like you know there's talk to me from those two australian brothers um i mean you can even roll stranger things into a horror genre right like these this genre is just successful since

27:53Joey:the last five or six years i think the takes out of this i mean the kind of general takes has been I'm like, OK, these two low-ish budget indie horror films or indie-ish horror films have beat out a Star Wars movie. The world is really upside down, isn't it? You talked about Blair Witch. We have Paranormal Activity. It's not unusual. There have been horror hit breakout films. I think it's crazier that a Star Wars film, just on its own, has not done so hot. And that's more a sign of people are tired of the franchise, just kind of rehashed of stuff that we've had before. and are craving something more original and unique.

28:30Addy:Yeah, I mean, putting, you know, Pedro Pascal and, like, these big names and then Jon Favreau at the helm, like, 10 years ago, that would have been an automatic recipe for tons of money to be made at the box. Now, it's like, eh, we'll see about that.

28:45Joey:I mean, Star Wars used to be, you know, I mean, it was rare and, you know, limited to get it, and I think we were just oversaturated. We just got way too much stuff that it's not, doesn't feel as special anymore.

28:56Addy:And it's not just Disney, right? Like, I just saw the poster release for Supergirl from DC Studios. And my first thought was like, do I really want to go see that? Like, we just got Superman, the new one, what, like a year or two ago? It was last summer.

29:12Joey:Yeah, I mean, because they've kind of had this whole DC reboot to kind of build out this DC universe that, you know, tied into Peacemaker, which the second season also was like, okay-ish.

29:22Addy:Yeah, I mean, I think Disney should put the Star Wars franchise into like the hands of somebody who's like a complete like a complete opposite of what you think of as a big franchise director and just let them reboot it from episode one and then release one every two years or three years. Like have you need to give it to like an Alfonso Codon or something. I'm thinking even younger than that. Like, you know, there's so many creative filmmakers now that are backrooms. Yeah, this guy's 20. But maybe they're not maybe mature enough to helm like a hundred million dollar movie, you know, with that sort of budget.

30:01Addy:But there are a lot of guys in the middle. I'm blanking on some director names. But yeah, I think take it like from Dave Filoni and Jon Favreau, like let those guys have a happy retirement and then just just go to town on somebody new and fresh.

30:16Joey:Yeah, I don't know. I mean, we'll see what happens with Star Wars. I think, you know, maybe just give it a break. Well, they have got another movie, that Ryan Gosling movie coming out next year. Hopefully that'll be fun.

30:26Addy:Oh, and the Disney execs should be watching the Star Wars stories and Star Wars Untold and all the AI YouTube channels. Because the reason they're so successful is because they get the lore right from like the 60 book series of the Star Wars universe.

30:42Joey:I was going to say, I know there are tons of books that people love, too, that were like, why don't you just adapt these books? Like, everyone already loves them. They kind of had. There were some theories or ideas were just like, just scrap 7 to 9 and just say it's another ultimate thing and, like, redo the 7 to 9 based on the books.

31:00Addy:Yeah, and it's not just about maybe taking one book and turning that one book into a movie, but take, like, yeah, take that timeline. And then just take bits and pieces that actually correspond back to the lore. And that is what's going to keep the fans happy. I think all of the Disney output over the last few years has all been very predictable, except with the exception of Andor. I think Andor is just like a standout in the way it doesn't feel anything like the rest of them. Yeah. Which reportedly Dave Filoni did not enjoy Andor.

31:31Joey:And there was no virtual production. Like it was all physically shot. Yeah. Yeah, that was what people, yeah, that was a comment too, where it's just like, man, I'm more upset about Star Wars because I saw how good it could be with Andor, and then it's like, not that. The Star Wars thing, I think that's like, sure, a Disney existential crisis-ish, but it's like, okay, they'll be fine. Maybe just put it on ice for a few years and figure something out and come out again and reboot it. The thing that's been most more interesting is the success of the smaller films and the two directors, which I also want to talk about because it's been this headline thing of like, OK, it's the YouTube generation of like directors is here.

32:08Joey:We went from like the Sundance generation in the 90s and 2000s and the launch of those directors. And then now it's this like YouTube generation. I like it. I think there is like some distinction there though, when we think about this, because YouTube's also so massive and the creator economy is so massive. And what do we mean by that? And what could take away from that? Because there were two, there was the sort of like online chatter of like, okay, well now you build out your thing on YouTube, you know, validate the audience. And then, you know, you can make the film or you can get funding to make the thing.

32:42Joey:And then I think there's this other bucket, which is more where these two directors came from, which is making stuff, posting it on YouTube, cutting your teeth there, and then getting signed and doing a deal, which feels a little bit more lightning in a bottle. But just for background, like so Kane Parson, who did Backrooms, he did the Blender animated Backrooms film that like kind of went viral and in 2022. And then kind of had this whole like world built out. And then I would say this is lightning in a bottle because he was like 16 and then he got signed to make this movie. He's, like, shooting it.

33:15Joey:I think he was signed when he was 18. He makes the movie when he's 19. He's 20 now when it comes out. This is just a crazy, like, this feels like very crazy one-off kind of thing. Yeah. But he made the film. It got attention on YouTube. But there was no The Backroom's channel. There was no The Backroom audience. There was no, like, I'm going to keep making content while we're making the film. And I'm going to take my audience. And that audience is going to, like, translate to, like, watching the movie. People are watching this movie because it looks like a cool movie and they're watching it. It's different than the, like, Mr.

33:48Joey:Beast YouTube world, where it's like, I'm Mr. Beast. I made a channel. I built up an audience. And then I signed a deal with Amazon that is bringing the Mr. Beast brand and making Amazon content. Which feels that's more in the bucket of, like, build out your channel, validate the content, and then try to get bigger deals with traditional media. Yeah. Same, even less so with a Curry Barker, a Curry Barker who did Obsession. He did like a bunch of sketch videos and kind of just made stuff on YouTube, but there was no like Curry Barker YouTube channel. And now, you know, different than the Markiplier where he like did the content and then got the funding, made his movie, but then brought his audience to like watch the movie.

34:32Addy:Yeah, I don't think this is like a one to one with how the music industry operates, because like the music industry is exactly what the Mr. Beast thing you just said is, which is that, you know, you build a following online, whether it's a SoundCloud or wherever, you know, and then you just basically basically sign the record deal. And now you have a built in audience and it's very sort of linear. It's like a square peg in a square hole. The movie executives want to see creative output right away. And this is where like pitchfizz has been extremely difficult, right? Just to get your project in a state where it's pitchable to the execs who's going to fund it.

35:12Addy:And I think YouTube has helped these guys accomplish that regardless of how big their fan base is. Just the fact that an exec can watch a video and then gauge how how quality it is.

35:24Joey:I mean, if you're also starting out, it's like, well, now with this overlap of AI, it's like if you can create a sci fi series, you create the world, you world build, you start actually making it as shorts or as YouTube series, and then it builds an audience and validates. It's like, okay, well, then maybe you can get the funding or pitch it or develop that into an actual series or movie. And you have this world already built and audience somewhat validated. Yeah, it's these two. But with the two director guys, it's like I feel like they're more, it feels more like YouTube as the replacement of Sundance.

35:57Joey:Nice. Of a, yeah, Steven Soderbergh. uh yeah those guys came up on the film festival right yeah they had a hit phil they had a film robert rodriguez mariochi and that like watch so on yeah that walks their career yeah yeah and this feels like youtube has replaced that aspect of film festivals that that is so true and the

36:20Addy:best part about youtube is a film festival is only for the 500 or so people that attended it. YouTube's for everybody. So anybody can see it. It's a democracy, right?

36:29Joey:Now to slightly contradict my point, Obsession was purchased at Toronto Film Fest for 14 mil. So it played at Toronto Film Fest, got acquired by, uh, did A24 acquire it there, I think. And then, then, you know, got its marketing and, and, and really, I'm sorry, not A24, um, yeah. Blumhouse, uh, and then got its, you know, well, this is crazy.

36:52Addy:Like, this doesn't make any sense. It's the same thing what anora uh went through it's like you gotta basically make the movie and then take a gamble on trying to sell it that's crazy to me yeah yeah that's the indie film biz yeah i mean like just for uh you know a young director even coming up with 750 000 in funding is such a big risk right like that's obviously not his own i don't think that's his own money no it had funding from a smaller production company but even for them that's still a big risk on a i guess like oh and And the reason I think a lot of films get bought and sold in film festivals is because there is an attached distribution and sales element to – like Cannes is famous for having Marche du Cannes, which is their distribution site of the film festival.

37:42Addy:So that's where you're buying and selling your projects.

37:45Joey:Yeah. I know. Yeah. I mean, there's a handful of festivals where it's like, yes, there's still – you get your film in there. it gets in front of buyers and hopefully there's a you know your best case is there's a bidding war and someone buys it and that's how your film gets acquired and how your financial backers make their money back but yeah it's like if you don't get into you know there's probably 10 fests where that's still viable and then every other fest is uh you know more just like fun and let's do a studio a festival circuit you can get your film acquired there but none of these directors launched there like they did like we like you would see in the past yes a yeah the director just mentioned yeah to get like official selection at sundance was such a big deal

38:28Addy:back in the 90s or early 2000s you know it's like oh wait who is that person oh like and now we hear about the director after the box office right like the whole thing's shifted to go make the thing yeah or i mean the fact that these got theatrical releases is like impressive as well i'm just impressed that gen z is got feature film on lock right like i'm just so happy that they are going to the movies more than millennials look also this other fact that came out this just

39:01Joey:came out today amc entertainment saw the highest attendance for may since 2019 i mean three movies

39:07Addy:at the same time, you know, regardless of how well Mandalorian Grogu did, it still drew people to the theaters, right?

39:14Joey:Yeah, it did. It did. It did. But, I mean, I don't know if you, like, I was looking at theater maps and stuff, because I did see Obsession this weekend, and it was harder to get a ticket for that. And then I would check out the Mandalorian seatings, and it was like, eh, you know, splotchy, pretty, like, if I wanted to get a good seat, I could. Obsession, I had to see it at 10.30 a.m. because there were, like, no seats anywhere else for, like, any of the other screenings. You saw Obsession? What did you think? I saw Obsession. It was good. It's worth the hype. It's fine.

39:39Addy:Yeah, it's good. I want to see it so bad. The trailer freaked me out. I was like, oh, God. Yeah, it's freaky. Yeah, man.

39:51Joey:So I think, A, with Bigger Picture, this feels like it validates, A, the theatrical experience, B, smaller movies still got a good shot.

40:00Addy:I wonder if these guys used any AI at all in their sort of early concepting. you know obviously not final pixel or anything uh for previous yeah just to kind of even just using nano banana for some shot like storyboarding and things like that i would be curious my guess

40:15Joey:is they probably have probably have now i think previous for these films was two years ago i mean things were pretty usable two years ago nano banana didn't exist did it you could get what's his name it's pretty good at blender i mean i'm sure he built a lot of blender yeah yeah

40:31Addy:Like all of the success needless to say at this budget level is without AI. Now, a couple of years from now, what, what would list landscape look like with this sort of young creative energy initiative to fund it yourself and then build it yourself. Plus having the capability that AI gives you, like if you combine those three things, I think that's a trifecta for Hollywood to have energy. Yeah. Indie budget fantasy,

40:59Joey:the indie budget like the genre is like obsession you know i mean you could tell it's a low budget ish because it's in a handful of locations it's really well made but you're the most of the films in a handful of locations and it's a you know product of being low budget you know backrooms is i haven't seen it yet but uh 10 million you know but and they built i know they built a lot of those sets but still not high crazy fantasy vfx you don't need it you don't need it yeah yeah i mean you do you make that low budget star wars i think we have appetite for both as

41:27Addy:viewers of movies like yeah we enjoy big vfx heavy movies right and at the same time we also enjoy thought-provoking very unique takes on familiar ideas why is it that it's only like a24 neon blumhouse and some of these like alt studios that are funding these cool things and then the big studios are sort of just doing the same thing they've been doing the big studios used to have

41:53Joey:their independent arms that did they even shut down or they just don't do as much like there was focus features right focus is still around i think that's part of nbcu i'm not mistaken blankie yeah and then sony pictures classic has is is still around right merrimax when it existed was disney yeah yeah yeah they used to have these things and do them and have these kind of smaller arms i know water brothers did launch one a new independent arm that's supposed to focus on this but yeah i think these were these smaller studios that were part of arms of the bigger studios they used to exist to do this kind of stuff and they just don't as much anymore and also just maybe this will be a comeback for it maybe they'll be like oh crap hey we gotta start we could actually make some good money if we just you know start funding some five ten million dollar projects and

42:43Addy:make more bets we also need a comeback for the different genres like like i was telling you it's just become so horror heavy over the last few years because that financially those those have been working but then uh comedies need to come back um zombie movies need to come i don't know i'm just saying like there's there's so many other genres i had fun watching uh naked gun last year

43:04Joey:and it was like we felt fresh because it was just like oh cool we just don't really get these types of comedies anymore and uh scary movie six is coming out like in a week or two and i'm excited about that where it's like you know before i don't think i ever saw any of the original ones but now it feels so it feels new and fresh i'm just like i would i definitely want to go to a

43:22Addy:like a theater with an audience to like you know one thing in the uh the early 2000s that we took for granted was we just thought movies would get better and better so we didn't really appreciate it as much looking back at it some of the movies from the 2000s early 2000s are now absolute gold And I think Scary Movie 1 is one of them. But we just thought it was a throwaway movie in the same way that Scream and I Know What You Did Last Summer and all those things were. And now they're bringing them back because they're valuable IP and they were executed a certain way. Yeah, we just took things for granted, man.

43:58Joey:I want Scary Movie 6 to succeed because they said if it succeeds, they will most likely green light White Chicks 2. Which I really want.

44:11Okay. On that note, let's wrap it up.

44:14Addy:I was like, can you just AI the white faces and stuff? I guess you could, yeah.

44:21Thanks for everything you talked about at denoisepodcast.com. Thank you for your continued love. It was really nice to meet some of you at AI on the Lot. For those of you who we didn't get to meet, we're here in the comment section. So chime in. Thanks, everyone. We'll catch you in the next episode.

From the publisher

Addy and Joey recap AI on the Lot's biggest announcements: Amazon MGM's Gen AI Creators Fund, their new AI production platform Project Nara, and the backlash that drove Jorge Gutierrez out of the program. Plus, new agentic tools from Drumina and Luma. ...

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