Every time something like this is released someone comments how it’s going to blow up legacy studios. The only way you can possibly think that is that: 1-the studios themselves will somehow be prevented from using this tech themselves, and 2-that somehow customers will suddenly become amenable to low grade garbage movies. Hollywood already produces thousands of low grade B or C movies every year that cost fractions of what it costs to make a blockbuster. Those movies make almost nothing at the box office.

If anything, a deluge of cheap AI generated movies is going to lead to a flight to quality. The big studios will be more powerful because they will reap the productivity gains and use traditional techniques to smooth out the rough edges.