Generative Media: From Experimental Research to a Billion-Dollar Market
amsterdam, zondag, 26 oktober 2025.
Generative media, in which AI generates images, video and audio, have evolved from academic curiosities into a market worth more than $100 million. Companies such as FAL have developed specialised infrastructure to optimise inference for generative models, enabling them to capture significant market share. The technology offers new opportunities for media and entertainment companies, but also raises fresh challenges in technical optimisation and ethics.
Technological Evolution and Market Trend
Generative media have rapidly evolved from experimental research projects into a market worth more than $100 million. This growth is driven by specialised inference optimisation, enabling companies like FAL to capture considerable market share. Stable Diffusion 1.5, released in 2022, transformed generative media from an academic curiosity into a practical tool for developers [1]. Modern video models such as Veo3 add extra complexity, including temporal consistency, audio synchronisation and substantially higher compute requirements [1].
Impact on the Media Industry
The impact of generative AI on the media industry is pervasive and will only grow. Media companies are increasingly investing in AI technology to work more efficiently. Some publishers have already implemented AI systems that can write articles, resulting in a 40% increase in the efficiency of their content production [4]. Research indicates that 70% of media companies in the Netherlands have implemented generative AI technologies, leading to a 25% reduction in production costs [4].
Advantages and Disadvantages
The advantages of generative AI in the media industry are significant. It increases the efficiency of content production and can improve the quality of media assets. However, there are also concerns about the impact on jobs and the quality and authenticity of AI-generated content. Experts stress that the ethical implications of this technology must be taken seriously [4]. Guillermo del Toro, for example, has made it clear that he would ‘rather die’ than use generative AI in his films, because he fears the unintended consequences of the technology [5].
Ethical Considerations and Regulation
The speed at which generative AI is developing brings new ethical considerations. There are worries about the misuse of AI for deepfakes and misinformation, prompting new regulations and guidelines. A recent report indicates that generative AI misrepresents news content 45% of the time, contributing to a polluted information environment [6]. This has led to calls for stricter regulation and greater transparency in the AI industry [6].
Future Trends
Future trends in the generative media market include improved models, growth in video and audio generation, and the integration of generative media into mainstream applications. Media companies plan to integrate generative AI into live broadcasting, with expected implementation by 2026 [4]. Additionally, companies such as Mondelez are investing in generative AI to reduce marketing costs, potentially saving up to 50% on expenses [3].