The Evolving Landscape: Variety's Look at the Entertainment Business Three Years On

Published in Media and Entertainment on Thursday, August 21st 2025 at 23:07 GMT by Variety
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Three years ago, Variety published a piece outlining its predictions for the entertainment business in 2025. Now, with the benefit of hindsight and ongoing shifts, they’ve revisited those forecasts, revealing how accurately (or not) their initial assessments landed and charting the surprising developments that have reshaped the industry. The core takeaway? While some trends solidified as expected, the speed and intensity of disruption, particularly driven by AI and evolving consumer habits, significantly outpaced earlier projections.

The original article highlighted a few key areas: the continued dominance (and potential fragmentation) of streaming, the rise of creator economies, the impact of virtual production, and the ongoing battle for talent and content ownership. Let's break down how these areas have played out, according to Variety’s assessment.

Streaming: Beyond Peak Growth & The Rise of Bundling 2.0

The initial prediction that streaming would continue its relentless growth proved partially correct but with a crucial caveat. While subscriber numbers haven't collapsed as some feared, the rate of acquisition has demonstrably slowed. The "land grab" phase is over, and profitability is now the primary focus for most platforms. This has led to significant belt-tightening – content cancellations, layoffs, and a renewed emphasis on cost-effective programming.

However, the predicted fragmentation hasn't materialized in the chaotic way initially envisioned. Instead, we’re seeing what Variety terms “Bundling 2.0.” Consumers are increasingly opting for curated bundles of streaming services, often facilitated by telecom providers or new aggregator platforms. This isn’t simply a return to cable packages; these bundles offer more flexibility and personalization than traditional offerings, allowing users to tailor their subscriptions based on specific interests and price points. The rise of FAST (Free Ad-Supported Streaming Television) channels has also become a significant factor, providing accessible content options that compete with subscription services.

The Creator Economy: From Hobby to Business – With Growing Pains

The creator economy remains a powerful force, but its trajectory hasn't been entirely smooth. While platforms like YouTube and TikTok continue to empower individual creators, the initial promise of easy riches has proven more complex. The article points out that algorithmic changes on these platforms have made it increasingly difficult for smaller creators to gain visibility, leading to frustration and a search for alternative avenues.

The rise of decentralized social media platforms and blockchain-based creator tools offers some potential solutions, allowing creators to own their content and connect directly with fans. However, these platforms are still in their early stages and face challenges related to scalability and user adoption. The article also notes the growing professionalization of the creator economy, with more creators employing teams and treating their online presence as a full-fledged business – complete with agents, managers, and legal representation.

Virtual Production: A Tool, Not a Revolution (Yet)

The initial enthusiasm surrounding virtual production hasn’t completely faded, but its impact has been more nuanced than initially predicted. While the technology continues to improve and offer significant cost savings for certain types of productions, it hasn't entirely replaced traditional on-location filming. The article highlights that virtual production is best suited for specific genres and projects where controlled environments are essential. Furthermore, the high initial investment costs and specialized skillsets required remain barriers to wider adoption.

AI: The Unforeseen Disruptor – Reshaping Everything

The biggest surprise, according to Variety’s assessment, has been the rapid and pervasive impact of artificial intelligence. While AI was acknowledged as a potential factor three years ago, its current capabilities have far exceeded initial expectations. Generative AI tools are now being used across virtually every aspect of entertainment production – from scriptwriting and storyboarding to visual effects and music composition.

This presents both opportunities and challenges. On the one hand, AI can significantly reduce production costs and accelerate workflows. On the other hand, it raises concerns about job displacement, copyright infringement, and the potential for homogenization of content. The article emphasizes that the industry is still grappling with the ethical and legal implications of using AI, particularly regarding intellectual property rights and the authenticity of creative works. The rise of "AI-generated" actors and performances also poses complex questions about ownership and compensation.

Talent & Ownership: A Shifting Power Dynamic

The battle for talent and content ownership continues to be fierce. The article notes a growing trend towards creators retaining more control over their work, fueled by the opportunities offered by independent platforms and direct-to-consumer distribution models. This has led to a shift in power dynamics, with creators demanding larger shares of revenue and greater creative autonomy. The rise of AI also complicates this landscape, as studios grapple with how to compensate artists whose work is used to train AI algorithms. Looking Ahead: Navigating Uncertainty & Embracing Adaptation

Variety concludes that the entertainment business remains in a state of constant flux. The rapid pace of technological innovation and evolving consumer preferences make it difficult to predict the future with certainty. However, one thing is clear: adaptability and a willingness to embrace change will be essential for survival. The industry needs to proactively address the ethical and legal challenges posed by AI, foster a more equitable creator economy, and continue to innovate in ways that meet the evolving demands of audiences. The next three years promise to be even more transformative than the last, demanding agility and foresight from all stakeholders in the entertainment ecosystem.

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The Evolving Landscape: Variety's Look at the Entertainment Business Three Years On