September in Review
By Mike Cloppse, Senior Manager of Creative Services
Government efforts to understand AI, the rise of immersive entertainment, the fall of traditional entertainment, and how to catch a movie while charging your electric car: here’s how our experts are thinking about some of September’s big stories.
Big Picture
Tech leaders including Elon Musk, Sundar Pichai, and Mark Zuckerberg held a meeting on September 13th with lawmakers in Washington to discuss AI and future regulations. This gathering, called the A.I. Insight Forum, aimed to educate Congress about the technology and its implications.
At the National Level: While Europe has been actively working on AI regulation, the U.S. has been slower to respond, but there’s been increasing engagement by the government and companies on AI-related issues. The White House is expected to release an executive order on AI this year and has been meeting with tech executives to discuss the technology. A Senate Judiciary subcommittee held a hearing on AI legislation, and senators have proposed regulation frameworks, including an independent office overseeing AI and safety standards.
At the State Level: Meanwhile, California Governor Gavin Newsom signed an executive order on September 6th that directs state agencies to adopt a proactive approach to AI regulation and outlines steps they can take to better understand AI. Darrell West, senior fellow at the Center for Technology Innovation within the Governance Studies program at the Brookings Institution, believes the executive order “brings [California] to the forefront of AI planning.”
“Having a successful conversation about AI regulation means inviting voices beyond corporate tech and regulators. Perspectives from public advocacy and research can round out the discussion to ensure that regulation balances protection with innovation. The one exciting byproduct is that Americans on both sides of the aisle agree that AI has as much risk as it does benefit. Regulators have an opportunity to take an agile approach to protective legislation by taking a page from the tech companies’ own playbook.”
– Jose Alvarez, Director of Project Management
Industry
After a week-long blackout, Disney and Charter reached a deal on September 13th to restore ESPN, ABC, and many other channels to Spectrum.
The Deal: Disney agreed to shed eight of its cable networks – mostly family-oriented channels such as Freeform and Disney Junior – from Charter’s bundle. In return, Charter will pay to offer Disney+ basic with ads when customers pay for Spectrum’s TV select package. According to the Wall Street Journal, although this deal is expected to result in a loss of 8% to 11% in Disney’s cable subscription revenue, Disney anticipates increased earnings from carrier rights and a growth in Disney+ subscribers.
The Trade-off: Sacrificing cable channels that provide profits for media companies to invest in streaming services has become a necessary trade-off for the industry’s transition. While some experts believe this change could hasten the shift to streaming, it also presents a risk for media companies, as cable channels supply significant profits for entertainment companies to then invest in their streaming services.
“The deal between Disney and Charter is a sign of the changing landscape of the industry and the strategic choices that media companies are making to prepare for the future.”
– Ashley Boland, Senior Creative Coordinator
Innovation
With the introduction of technological advancements and changes of media consumption patterns we have entered an “Immersive Era” for entertainment, says a report by Bain & Company.
Lean-in to the Future: The rise in popularity of immersive entertainment represents a paradigm shift in the way people consume content. There’s been a shift away from traditional “lean-back” entertainment forms, such as books and streaming, and towards “lean-in” activities, such as gaming and role-playing at both in-person or virtual immersive experiences.
Converging Landscape: Platforms are embracing the “Immersive Era” by creating a single environment for users to play, socialize, work, and more across channels and devices. For example, consumers are using gaming platforms to not only game but to create content and attend livestreamed events.
Preparing: A new era calls for new marketing tactics. Brands can capitalize on “lean-in” content by exploring nonlinear storytelling and investing in interactive brand placement and partnerships. For example, the NFL partnered with Fortnite to sell branded virtual items and generated over $50 million.
“When done well, marketing in immersive platforms doesn’t feel like advertising and provides an opportunity for brands to have users actively engage with them as opposed to watching an influencer promotion or seeing a YouTube ad.”
– Mike Cloppse, Senior Manager of Creative Services
Inspiration
Tesla’s planned Supercharger station in Hollywood takes charging your car to a whole new level, according to Design Taxi.
Re-charging the Charging Experience: Tesla’s 24-hour Diner and Drive-In charging station is a refreshing blend of nostalgia, novelty, and technology, connecting the dots between Hollywood’s history and culture with Tesla’s vision for the future of transportation. The Diner and Drive-In will feature a retro diner with rooftop seating and a drive-in movie theater showcasing iconic Hollywood scenes.
A Challenge Becomes an Opportunity: Slow charging times remain a challenge to widespread EV adoption. While it only treats the symptoms of slow charging time, the destination shows how creative experiences can turn problems into opportunities.
“Tesla seeks to turn the tedious wait for a charge into an enjoyable and unique experience for Tesla owners. Suddenly, charging your car can become cool.”
– Christine Rudloff, Senior Manager of Strategic Marketing & Events