What is going on in Hollywood?

Hollywood’s AI Revolution: A VC’s Take on Pop Culture, Tech, and the Future of Entertainment

At Web Summit Vancouver 2026, Mr. Bruce Hamilton, CEO and General Partner of Everybody, discussed consumer entertainment and technology. His firm, Everybody Ventures, invests in early-stage consumer companies, believing pop culture insight is crucial for predicting market trends, a strategy he likens to an A&R role in business.

AI’s profound impact on music and Hollywood was a key discussion point. Mr. Hamilton noted consumer demand for new social media platforms, citing existing ones’ divisive nature and lack of transparency. OpenAI’s Sora failed due to high production costs and intellectual property challenges.

Mr. Hamilton stressed new AI platforms must proactively engage with IP holders. Everybody Ventures’ portfolio includes Telly, a free dual-screen smart TV subsidized by ads, and an investment in Anthropic on the secondary market, reflecting its interest in cutting-edge AI companies.

In a “hot take,” Mr. Hamilton predicted enterprise AI might not be sustainable long-term. He believes AI’s true cost, post-venture capital subsidies, could surpass human labor. This could lead companies to re-hire human employees, with AI serving as a supplementary tool.

AI is set to transform advertising, enabling rapid ad creation and A/B testing. For creators, AI is a democratizing tool, fostering a “new renaissance era” by allowing individuals without technical expertise to produce content. Human taste and creativity remain essential.

Traditional studios, burdened by high costs for original IP, are increasingly acquiring content from independent creators with proven audience engagement. While blockbusters persist, Mr. Hamilton advocates for AI to empower new, original stories, drawing parallels to historical resistance against technological shifts in film.

The music industry has shifted to a “catalog business,” with companies acquiring song rights for significant sums. Spotify’s model rewards quantity, prompting artists to release more music. The platform benefits from promoting independent or AI-generated artists, as it pays them lower royalties compared to major labels.

The video landscape is seeing the rise of “microdramas”—short, mobile-first TV series popular in Korea. Mr. Hamilton cited Quibi’s failure as a lesson in market timing, launching short-form content when audiences needed long-form entertainment during a global lockdown.

Finally, Mr. Hamilton discussed media consolidation. Mergers provide established IP but can stifle new content creation from major studios, creating opportunities for independent creators. He suggested the era of “mega-mergers” might be ending, with capital drying up. The BMG and Concord merger could establish a fourth major music label, potentially increasing competition.