The groundbreaking partnership between Lionsgate and Runway, announced on September 18, 2024, aims to create a custom AI model trained on Lionsgate's proprietary catalog12. This model will generate cinematic video that can be further refined using Runway's suite of controllable tools3. Initially, the technology will be used for storyboarding, with plans to expand its application to creating background elements and special effects4.

• The deal is expected to save Lionsgate "millions and millions of dollars" in production costs5

• Lionsgate filmmakers will have access to Runway's cutting-edge AI tools for various aspects of production4

• The partnership opens possibilities for future licensing opportunities, potentially reshaping content creation in the entertainment industry6

Runway's AI model will be trained on Lionsgate's vast library of over 20,000 film and TV titles, including popular franchises like The Hunger Games and John Wick12. The training process will involve analyzing visual styles, cinematography techniques, and narrative structures present in Lionsgate's productions to create a custom "cinematic video" model tailored to the studio's content2. While the exact financial terms of the deal remain undisclosed, it is expected to save Lionsgate "millions and millions of dollars" in production costs3. The partnership raises questions about compensation for creative teams whose work is used in training the AI model, as specific details on this aspect have not been made public45. This lack of transparency has sparked concerns in the industry, especially in light of recent strikes and ongoing debates about AI's impact on creative professions4.

Michael Burns, Lionsgate's vice chair, hailed Runway as a "visionary, best-in-class partner" that will help the studio develop "cutting-edge, capital-efficient content creation opportunities"12. He emphasized that AI would be used as a tool to augment and enhance existing operations, with several filmmakers already excited about its potential applications in pre- and post-production processes13.

Cristóbal Valenzuela, Runway's co-founder and CEO, expressed commitment to providing creators with powerful tools to enhance their workflows and enable new storytelling methods24. He stated, "The history of art is the history of technology," highlighting the company's efforts to build transformative mediums for artistic expression2. Valenzuela also noted Lionsgate's clear vision for integrating AI into their creative process4.

The integration of AI into film production through the Lionsgate-Runway partnership opens up innovative possibilities for creative workflows. Filmmakers can now leverage AI tools for rapid iteration and experimentation, allowing them to visualize different versions of their ideas more efficiently1. Specific applications include:

• Accelerating traditionally manual tasks like video editing and visual effects creation

• Using text prompts to generate visual effects or scenery

• Enhancing post-production processes such as color correction

• Facilitating real-time collaboration between directors, editors, and VFX teams1

These advancements aim to reduce production timelines and costs while potentially unlocking new avenues for visual storytelling1. However, the success of this venture will largely depend on the quality and diversity of the training data, as well as the sophistication of Runway's AI algorithms2.

The partnership between Lionsgate and Runway signals a potential shift in the competitive landscape of the entertainment industry, positioning Lionsgate as a technological innovator1. However, this move also raises concerns about job displacement and the impact on creative roles in filmmaking2. The use of AI in content creation remains controversial, with Runway facing legal challenges from visual artists alleging copyright infringement2.

• The deal comes amid a difficult summer for Lionsgate, with several box office disappointments2

• California Governor Gavin Newsom recently signed bills regulating the use of AI replicas of performers2

• The success of this venture will depend on audience reception to AI-enhanced content and the industry's ability to balance technological innovation with creative integrity1

Major entertainment companies are indeed exploring partnerships with AI firms to leverage their content libraries and develop custom models. Disney, for instance, has invested in two language AI startups through its 2024 Accelerator Program1. These include AudioShake, which uses AI to parse audio tracks for mixing or dubbing, and ElevenLabs, a multilingual AI voice startup1.

The trend of custom AI models trained on proprietary content libraries is gaining momentum:

• Disney Music Group has partnered with AudioShake to unlock new creative and marketing opportunities for its catalog, including stem separation and automated lyric transcription2.

• Epic Games is collaborating with Disney to build a $1.5 billion open game and entertainment universe, likely incorporating AI technologies3.

• OpenAI, while not explicitly partnering with entertainment companies, is seeking massive funding that could put it on par with major corporations like Disney and Uber4.

This shift towards custom AI models trained on specific content libraries suggests a future where entertainment giants leverage their vast intellectual property to create unique AI-powered experiences and production tools. However, the success of these ventures will depend on factors such as content quality, AI sophistication, and audience reception to AI-enhanced entertainment.