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Will AI allow Chinese cinema to overthrow Hollywood?

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The February release of an enhanced version of the Chinese Seedance app, developed by ByteDance, the parent company of TikTok, has caused a stir in the world of cinema, particularly in the United States.

Within minutes, users can now create and edit videos with quality comparable to that of a professional film production.

Previously exclusive to the Chinese market, Seedance 2.0 began its international rollout last week.

  • This app is not the only one using artificial intelligence to generate videos. Other alternatives, including Western ones like Dream Machine, Hailuo AI, or Sora, the text-to-video model developed by OpenAI, exist, although Sora is expected to close by the end of April.
  • Seedance 2.0 stands out for the ultra-realism of its videos, causing concern among major Hollywood studios like Netflix, Paramount, Warner Bros, and Disney. They have issued warnings to ByteDance, accusing the Chinese giant of copyright infringement.
  • The group has not indicated any intention to change its AI model. However, ByteDance is expected to implement security measures to prevent the generation of content that could lead to further intellectual property violations.

While Seedance 2.0 is highly popular among individual users, the model is intended for professional use in the cinema and advertising fields. In China, director Jia Zhangke, revered as one of the leading figures in sixth-generation Chinese cinema, released a viral short film on February 12 made using Seedance for the Lunar New Year.

Jia Zhangke is not alone in China and across Asia in seeing AI as a means to reinvent filmmaking at a lower cost.

  • The epic film “Huo Qubing,” depicting the life of a general from the Han dynasty, was entirely produced using artificial intelligence by Nano Manga Pipeline, boasting 500 million views at a production cost estimated at 3,000 yuan (less than 400 euros).
  • Universities are also embracing the AI trend in their programs. Last November, the University of Hong Kong announced the launch of its “School of Future Media,” housing Asia’s first AI-assisted filmmaking master’s program.
  • Under the government’s initiative, Chinese universities like the Communication University of China have eliminated programs leading to careers deemed “automatable” by AI (such as photography, editing, translation), while developing “AI+” micro-specializations focusing on art direction, human-machine interaction, and AI-assisted production.

This Chinese AI breakthrough comes at a critical time for Hollywood, where the number of productions has been declining for years, partly due to high labor costs in the US and lack of economic incentives from the federal government and states.

  • Last year, only 159 new productions (films and TV shows) with a budget of $40 million or more were launched in the US, down from 251 five years ago – a 37% decline.
  • The risks associated with filmmaking are prompting producers to invest in projects with the highest potential return on investment.
  • The decrease in film production affects the job market, especially in California, and impacts the US’s ability to maintain its cultural superpower status.

China’s strong position in the AI-assisted cinema market is also due to its lead in short formats. As content consumption shifts towards mobile devices, videos like “Catfu” – cats practicing kung-fu – have gone viral on Chinese internet, drawing on the heritage of Shaw Brothers’ martial arts films from the 1970s.