Why is entertainment (Gaming, TV, and movie subscriptions) getting price hikes at the same time AI is getting more and more injected in the same sector?
Because as several reports have shown now, in many cases AI isn't the Messiah it's made out to be.
The promise of AI is making people so much more productive that profits are bound to go up. Either by putting out more products (or just faster depending on how you look at it) or by replacing people (read: costs) entirely.
The reality is
1. The companies have no idea how useful it actually is.
2. Most employees don't know how to properly use it
3. investors expect it to increase profit on everything everywhere by redicilious numbers.
1. Many studies are showing it's being employed everywhere but in many cases doesn't actually increase productivity, at least not at the same level of quality. if it does then the costs have to actually be justifiable which they often aren't.
2. It's a new technology, everyone is using it because they're afraid to fall behind it simply told to do so. Often they're not told how to do so. It's like handing some remote tribesmen a chainsaw. Sure it could be very useful but if they don't know how to even turn it on it might be slower rather than faster.
3. There's only so much money in the world so that last point is bound to fail. You can only take as much as there is. If people get fired everywhere there is simply less people to take from.
Now imo the gaming sector is one where I suspect AI can actually greatly reduce costs. Not for coding engines or coming up with a great gameplay loop or original narrative but for creating assets. Being able to create a whole bunch of sprites based on just one. Style morphing from a photo to a certain look etc is going to replace artists.
For the huge AA studios I don't know how much of an effect it will have but for Indies and solo Devs the implications are massive. Before I wouldn't have dreamed of making something like settlers , there's too many buildings and units and animations to do for one person (especially one like me without artistic talent). However one person armed with the power of generative AI like Googles nano banana and a decent game engine can be super productive and put out something what would use to take a whole team.
That will lead to an increase in content and a lowering of prices though, there's only so much money after all. Or like the movie industry and music industry where 99.9% of people make basically nothing and the 0.01% is swimming in it