Even as Hollywood performers protest and Hollywood studios sue "in their war on AI," reports the Los Angeles Times, "the entertainment industry is deepening its dependence on it." Among hundreds of job postings in late June, more than one in 10 was likely connected to AI. The top studios' public postings suggest they have been recruiting people to build AI tools. They are also recruiting teams to defend their intellectual property against unauthorized AI use. "There are plenty of studios that are hiring [for AI] but never talk about it in public," said Yoland Yan, a co-founder of ComfyUI, a company that helps studios juggle different AI tools. Companies have been hesitant to detail how they use generative AI in film production — partly because they are concerned about consumer and union backlash. Some in Hollywood described AI use as the new cosmetic surgery, where everyone knows it is happening, but few will admit to it... Although some companies may be shy about sharing their AI plans, big stars who don't have to answer to others have been more open about their embrace of the new technology for storytelling. Rejecting AI is like picking a horse and buggy over a car, said "Star Wars" creator George Lucas. "Artificial intelligence means it's much easier for us to make movies," he told a trade magazine earlier this year. "There's nothing you can do about it. That's progress. It's the future." Some in Hollywood have a softer stance on artificial intelligence, with studios cutting deals with AI companies, and filmmakers like Martin Scorsese backing AI companies. Ben Affleck launched an AI film tech company then sold it to Netflix for half a billion dollars. When launching InterPositive, Affleck said he wanted to keep "storytelling human" by building AI tools that could fix lighting, generate missing shots and other things while "keeping creative decisions in the hands of artists...." Disney, Netflix and Amazon had job postings that were about using AI on the creative side of the business. Universal, Paramount, Warner Bros. and Sony had job ads suggesting they were also using AI but for marketing, distribution and audience analytics. The postings suggest the Disney, Netflix and Amazon studios are building repeatable AI workflows for visual effects, animation, sound and dubbing. The companies also seem to be building in-house teams to develop custom generative-AI models, while also using third-party software. None of the jobs advertised were to create AI that wrote scripts or created AI actors. Ironically, the Times used Claude Code to build a scraper to identify the job postings, their article acknowledges. Three Disney jobs were for "content security," assessing AI tools and guarding against piracy, watermarking and rights-protection work. But Disney is also hiring PhD-level talent "to study 'computer graphics and AI' for Pixar and Disney films," according to the article, and "people to 'bridge the gap between research and practical studio application.'" Disney-owned visual effects shops Industrial Light & Magic "was searching for supervisors to 'explore emerging technologies (including AI/Machine Learning)' to develop new production workflows." Audio post-production unit Skywalker Sound "seemed to be recruiting to build proprietary AI models for soundtracks, voice separation, and voice transfer, the process of taking a speaker's tone and pitch, and applying it to new content." Amazon "was hiring a principal AI executive to drive AI-tool adoption across production, plus roles in operations automation and LLM content classification."

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A production company and filmmaker are suing Netflix for $105 million, alleging the streamer lost a stolen drive containing an unencrypted master copy of the unreleased Nicolas Cage film Fortitude, which they claim damage its exclusivity and market value. Netflix denied responsibility for the lost film but said it takes content security seriously and has offered to monitor piracy sites for unauthorized copies. CBS News reports: The complaint filed on Wednesday in California district court alleges that the film's associate producer, Daniel Haido, hand-delivered an unencrypted master copy of the film to Netflix so the company could screen it as a potential buyer. Haido verbally instructed the employee to delete the files after the screening, according to the suit. A little over a week after the screening, Netflix emailed the filmmakers to say the drive had been stolen, the plaintiffs allege. "Someone stole a good amount of drives from our office desks this past week," a Netflix executive wrote in the email, according to the suit. The complaint notes the movie, entitled "Fortitude," took over seven years to make and cost $45 million. It tells the story of a secret mission called Operation Fortitude during World War II that was orchestrated to mislead the Nazis about the Allied invasion of Europe. The film stars Nicolas Cage as Dusko Popov, a real-life spy during World War II, as well as Sir Ben Kingsley and Ron Perlman. The plaintiffs said studios will now be dissuaded from buying the rights to the movie, knowing that a version of it could be released by a third party for free. "The film's value depended in significant part on its exclusivity as an unreleased, first-to-market work," the complaint states. "By losing control of the film, Netflix destroyed that exclusivity and materially, if not completely, impaired the film's marketability."

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