Sovereign wealth funds from the Gulf are investing heavily in the gaming industry, which is larger than film and TV combined. This is a deliberate, long-term strategy to diversify their economies away from oil by acquiring valuable, globally-relevant intellectual property and capturing a new generation of consumers.

For the past five years, the top-performing shows on major streaming platforms have been adaptations of video game IP, such as 'The Last of Us', 'Fallout', and 'The Witcher'. This demonstrates a significant cultural shift where gaming franchises are now the dominant source of new, blockbuster entertainment content.

Traditional media companies are turning to successful YouTube creators to source proven concepts and talent. They offer upfront capital to scale existing YouTube IP into larger productions, creating a symbiotic relationship between once-separate platforms.

The recent success of video game adaptations like 'Fallout' is due to showrunners (e.g., Jonah Nolan) who are genuine, lifelong fans of the source material. Unlike early attempts led by opportunistic studios, modern adaptations are created by people who deeply understand the game's nuances, resulting in higher quality.

Instead of exclusive, all-encompassing deals, media conglomerates like Disney should strategically license separate parts of their IP portfolio (e.g., Pixar to Google, Marvel to Anthropic). This creates a competitive market among LLM providers, driving up the value of the IP and maximizing licensing revenue.

In the Warner Bros. acquisition, the value of seemingly dormant IP like Looney Tunes is meticulously calculated. Bankers assign specific multi-million dollar figures to assets like 'Foghorn Leghorn,' demonstrating that a deep, monetizable character library is a primary driver of these mega-deals, not just current blockbuster franchises.

Sam Altman suggests AI will create a new form of entertainment on the spectrum between passive movies and intense games. Experiences will be more interactive than a film but less demanding than a typical video game, allowing users to lean back while also having moments of creative input.

The success of events like the Daft Punk concert in Fortnite signals a strategic shift. IP holders will launch new brands within games first to build community, then expand to movies or TV. Games are now viewed as the most influential social platforms, not just secondary marketing channels.

Independent animators are bypassing Hollywood gatekeepers by building massive fandoms directly on YouTube. By proving their IP with hundreds of millions of views and monetizing via merch, they gain incredible leverage, forcing studios to come to them with favorable deals.