The competition focus in TV software is shifting towards advertising. TV manufacturers are increasingly eager to leverage TV operating systems (OS) for ad placements and user tracking, leading to bold new strategies such as advertising technology companies launching TV operating systems and displaying ads on TV screensavers.
TCL, as a TV manufacturer, is set to launch a series of short films, premiering on its free streaming service. This marks a new attempt by the company in monetizing TV users and film production, aiming to reduce costs by relying on generative AI and targeted advertising.
AI Shorts Debut on Free Streaming: TCL Bets on a New Content Model
TCL's five short films are an initiative to help people become more accustomed to movies and TV shows created by generative AI. These films will be "significantly promoted and showcased" on TCL's free ad-supported streaming TV (FAST) service, TCLtv+. TCLtv+ features hundreds of FAST channels and is pre-installed on TCL brand TVs, which use various operating systems, including Google TV and Roku OS.
Image Source Note: Image generated by AI, licensed through Midjourney
Some of these shorts feature live actors, with some familiar faces such as Kellita Smith, who played Wanda, Bernie Mac's wife, in "The Bernie Mac Show." Others focus on characters created through generative AI. All films utilized generative AI for special effects and/or animations, taking 12 weeks to complete. According to 404Media, TCL used AI tools like ComfyUI, Nuke, and Runway. Notably, all of TCL's shorts were scripted, directed, and scored by live professionals, including some faces we might recognize. At the film screening, TCL's Chief Content Officer for North America, Chris Regina, stated that "over 50 animators, editors, visual effects artists, professional researchers, and scientists" were involved in the production of these films.
How Effective are AI-Produced Shorts? Can the “Low-Cost” Model Succeed?
These shorts aim to promote a service created for targeted advertising and utilize generative AI for fast, low-cost content creation. The quality of AI-generated videos is expected to improve over time, but it remains to be seen whether TV brands like TCL will commit to finding the best and most natural ways to produce videos using generative AI. Currently, TCL's films showcase the limitations of AI-generated videos, such as strange background images and distracting voiceovers, as well as poor audio synchronization.
However, TCL and the creatives behind these films believe that this does not necessarily mean these movies are inferior content. Addressing the coherence errors that may distract viewers, Regina pointed out that people hold "too harsh a view" of AI because they "do not want to accept" it. He added:
"In large live-action film productions, coherence errors are just as prevalent as in AI-produced films, and fixing them in AI might be easier than in live-action... Whether using AI or live-action filming, a sufficient number of eyes are needed to catch errors, think, and correct them. Whether it's an AI error or a human error, coherence issues become fodder for social media jokes."
Films Born for Targeted Advertising and User Tracking
TCL plans to delve more into original content, with its strategy seemingly focused on minimizing costs and driving ad placements. According to 404Media, citing TCL's presentation, these films will be "informed and funded by targeted advertising." At the film screening, TCL's General Manager for the U.S. research division, Wang Haohong, stated that TCL's films and programs will "create a flywheel effect through both advertising and AI." He envisions an era of "free quality original content" produced by AI, reminiscent of the silent film era or Hollywood's golden age.
TCL's Vice President of Content Services and Partnerships, Catherine Zhang, explained at the screening that the goal of their original content is to acclimate people to passively watching films and programs made by generative AI so that TCL can profit from targeted advertising.
According to 404Media, she stated, "Data tells us that our users do not want to put in that much effort. Half of them don't even switch channels."
However, if creative works are so evidently driven by advertising and AI business, can they still evoke human emotions, feelings, and experiences? This is a significant question. From a business perspective, TCL also faces the challenge of convincing users that such content is enjoyable and satisfying, and that it won't harm human creativity or jobs. Over the past year, there has been negative backlash against films, TV shows, and ads that use or are suspected of using generative AI.
Yet, companies like TCL can save substantial amounts of money and time by utilizing generative AI to create original content. Regina told 404Media that the new films are a way for TCLtv+ to attract viewers from larger streaming services like Netflix without matching those competitors' enormous content budgets. Regina also noted that the Chinese company does not have to worry about offending Hollywood, as it "has no history with it."
TCL's films signal that we may see more similar creative strategies in the coming years, as content creators (now including Hollywood, streaming services, TV operating system operators, and companies like Chick-fil-A) seek to maximize advertising revenue and user data, viewing AI as a potential means to achieve financial goals.
It is widely believed that the "peak TV era," characterized by skyrocketing content budgets, has ended, and the film industry is also in turmoil. For TV and movie enthusiasts, imagining a world where more new shows and films are created like these shorts from TCL can be frustrating. However, as you will see below, such content is far from dominating your TV screen or generating significant revenue for large production companies.
