Key Takeaways
- The entertainment industry has seen significant innovations in 2025, including the use of artificial intelligence in film and podcasting.
- The Las Vegas Sphere has entered the movie business with a new cinematic model, using digital effects artists and artificial intelligence to remaster classic films.
- AI-generated podcasts have become increasingly popular, with Inception Point AI creating over 175,000 podcasts as of November 2025.
- Letterboxd has launched its own streaming service, offering a collection of hidden gems and underseen films that may otherwise be hard to find.
- OpenAI’s Sora 2 video generation tool has raised concerns over copyright and ownership in Hollywood, but has also led to a $1 billion investment from Disney.
Introduction to Innovation in Hollywood
Hollywood isn’t traditionally known as a hub of innovation, but with the rise of artificial intelligence driving new ways of thinking, that’s changing. The year 2025 has seen the industry take some big swings, from the Las Vegas Sphere getting into the theatrical business with an enhanced version of "The Wizard of Oz" to the revival of a long-dead format for cinephiles. Artificial intelligence has played a key role in several of these innovations, and its impact on the broader industry will be significant.
The Las Vegas Sphere Enters the Movie Business
The Las Vegas Sphere made headlines in late August when it entered the movie business with a new cinematic model, starting with the 1930s Americana classic "The Wizard of Oz." The Sphere used digital effects artists and artificial intelligence to remaster the Victor Fleming classic for its unique wraparound screen, adding environmental elements to make the experience more immersive. Financially, the experiential screening became a quick success, nearly selling out its opening weekend with an approximate $650,000 per-show average. This success has led to plans for future film adaptations and the potential for more Sphere locations.
AI Enters the Podcasting Space
2025 saw AI take on an increased presence in the entertainment industry, with artificial intelligence already firmly established in film and music. One of the more surprising developments was the advent of AI podcasting. Inception Point AI had already created more than 175,000 AI-generated podcasts as of November 2025, with the company adding 3,000 podcasts to its number each week. These podcasts cover a wide range of topics, with AI mimicking different hosts and personalities to serve as "edutainment" comparable to an "audio version of Reddit or Wikipedia." This development has significant implications for the podcasting industry, which is expected to reach $17.59 billion by 2030.
Letterboxd Gives Undistributed Festival Films a Home
Letterboxd has launched its own streaming service, offering a collection of hidden gems and underseen films that may otherwise be hard to find. The Letterboxd Video Store aims to provide a platform for low-budget filmmakers to get their films shown to wider audiences once their film festival run has completed. At launch, four festival titles made their way onto the service with a $20 PVOD price point, and five older films were featured in the Video Store’s Lost and Found section. This service could prove to be a lifeline for struggling filmmakers and has already led to a theatrical distribution deal for one of the featured films.
Sora 2 Makes Waves in Hollywood
OpenAI’s Sora 2 video generation tool has raised concerns over copyright and ownership in Hollywood, but has also led to a $1 billion investment from Disney. The tool allows users to generate short-form social media videos using text prompts, but has faced pushback from film studios and IP owners over the use of their property without authorization. Disney’s investment and three-year deal to allow Sora users access to more than 200 characters owned by the company has potentially legitimized the use of Hollywood property in AI videos. However, the long-term implications of this technology on the entertainment industry remain to be seen.
The Return of VistaVision
The return of VistaVision, a high-resolution, widescreen format dating back to the 1950s, has highlighted a trend of premium film formats becoming a big selling point for a significant niche of moviegoers. Paul Thomas Anderson’s 2025 film "One Battle After Another" was shot and projected in VistaVision, with only four commercial locations in the world capable of screening it in this format. The film’s success has led to other filmmakers exploring the use of VistaVision, including Emerald Fennell and Greta Gerwig. This trend has significant implications for the future of film exhibition and the types of experiences that audiences are willing to pay for.
YouTube Gives Creators an AI Assist
While creatives across industries are concerned about the ramifications of AI’s continued advancement, there remains the opportunity for the technology to make everyday grueling tasks a little easier. YouTube has rolled out over 30 distinct tools to help creators, several of which involve AI in some form or another. One of the most notable tools is Ask Studio, a native AI chatbot that helps YouTube creators parse through data and metrics to better understand how to best serve their channels. This tool has the potential to significantly improve the efficiency and effectiveness of creators, allowing them to focus on producing high-quality content rather than getting bogged down in data analysis.
