Hollywood’s New Conversation: Ari Emanuel on AI and Entertainment

If you caught Ari Emanuel’s recent chat with Ben Thompson on Stratechery, you know the guy doesn’t mince words. Emanuel—who runs WME Group and TKO Group Holdings (think UFC and WWE), plus the live events startup MARI—is doubling down on live experiences. Why? Because as AI rewires how content and ads get in front of people, the old rules for digital entertainment are on shaky ground.

What’s Actually New: AI, Advertising, and the Value of Live

They kicked things off with Emanuel’s memoir “Roll the Calls,” then dove right into what’s actually shifting:

  • AI’s Impact on Advertising: Both agreed: AI is upending how ads work. Forget the old search-based playbook at Google and Amazon. Now, large language models (LLMs) could run “personalized ad predictors” on your own device, showing you ads tailored just for you—without your data leaving your laptop. This privacy-first approach is a sharp break from business as usual, where targeting often means your data gets passed around. The upshot? Ads might hit closer to the mark, but everyone’s feed could get even more fragmented, since algorithms show users only what they’re likely to want, not what brands want to blast out broadly.
  • Social Networks’ Growing Value: Despite hand-wringing over social’s decline, established networks (Facebook, Instagram, X, LinkedIn, Snapchat) aren’t going anywhere. In fact, as AI sharpens content curation and keeps people glued to their screens, these networks could become even more valuable. TikTok’s secret sauce—surfacing the best stuff regardless of who you know—blindsided Meta and forced them to copy with Instagram Reels. The conversation made it clear: algorithmic feeds now drive engagement, not your cousin’s vacation pics. And if you snooze on these shifts, you lose ground fast.
  • Live Events as an AI-Proof Asset: Emanuel’s “big bet on live” comes from a simple calculus: live events generate a kind of value AI can’t copy-paste. That’s the whole MARI thesis. He and Thompson pointed out that as digital ads get more automated and impersonal, actually giving people experiences they crave in real life stands out. Live events resist commoditization; they cut through the noise in a way scrolling never will. If AI makes everything digital cheaper and more generic, being somewhere in person becomes a premium people will still pay for.
  • Advertising’s Economic Role: Here’s the macro: advertising usually sits at 1–2% of GDP, jumping to 2–3% with digital. But with AI shaking up how ads get served, money could flow toward live events—think sports and concerts—where automation can’t muscle in. Emanuel sees the ad spend piece of GDP potentially climbing, but he’s blunt about the risks for incumbents. If AI agents let people skip the search step entirely, the ad-fueled business models at Amazon and Google could take a hit.
  • Generational Change and Platform Strategy: Emanuel called out Snapchat as still valuable, thanks to its loyal younger crowd—even if it hasn’t nailed AI yet. High engagement is a strength, but monetization remains a puzzle (those AR glasses didn’t exactly become the next iPhone). Missing the next technology wave or failing to pivot, as cable TV did with streaming, leaves any platform vulnerable.

AI and the Shifting Economics of Digital Platforms

Thompson and Emanuel drilled into how AI can flip the script on today’s digital economics. Traditionally, ads work by matching what people want with what’s for sale—using the “two-towers” method of pairing user data with product data. AI could just jump over all that, predicting what you want directly and making search less relevant.

That’s a direct threat to how Google and Amazon make their money. Emanuel flagged Amazon’s $60 billion ad engine as especially exposed if AI agents start handling shopping for users, cutting out the search step entirely.

Another wrinkle: advertising isn’t just about eyeballs—it subsidizes the digital economy. Thompson noted that ad revenue lets platforms like Amazon offer cheaper prices; if AI cuts into that, companies may have to raise prices, triggering short-term inflation. So, if your business model runs on thin margins and big ad spend, be warned: things could get bumpy if the ad-fueled subsidy shrinks.

Case Study: The Evolution of Content Discovery

TikTok’s algorithm is a textbook example of how AI is rewriting content discovery. Instead of serving up posts from your friends, TikTok shows you the most engaging content from the whole platform. That means more great stuff in everyone’s feed, even if the ratio of good-to-bad content stays the same. Meta’s answer—Reels—shows incumbents can catch up, but also how quickly the ground shifts under their feet.

Snapchat’s story is different, but instructive. Its grip on younger users keeps it relevant, but Emanuel wondered why it hasn’t spun that into AI-driven innovation. Instead, they gambled on hardware that hasn’t paid off yet. Still, high engagement and a young audience make Snapchat a property worth watching.

Why This Matters for Your Business

If you’re running a company, managing a team, or trying to sell anything, these changes aren’t just background noise. If AI-driven ad targeting upends the platforms you count on, you can’t afford to wait and see. Suppose Amazon’s ad business stumbles because of AI shopping agents—that’s a problem if you rely on Amazon for reach.

The flip side: live events and in-person engagement offer a hedge, letting brands connect in ways that digital-only channels increasingly struggle to deliver.

Here’s a scenario: if your marketing hinges on digital ads, you might soon run into AI agents filtering what users see, making broad targeting less effective. Shifting some energy into live experiences—or platforms that foster real engagement—could help future-proof your strategy. The discussion also flagged a risk for anyone living off advertising-supported models that rely on customers forgetting about subscriptions.

As AI makes it easier for people to manage (and cancel) those subscriptions, passive revenue streams could dry up fast.

How to Prepare: Practical Moves for Business Leaders

  • Audit Your Ad Spend: Take a hard look at how much you lean on platforms at risk from AI. Spread your bets—consider putting more into channels that let you own the customer relationship or deliver live experiences.
  • Explore Live Engagement: Host or sponsor live events—physical or virtual—to create direct relationships that AI can’t dilute. These moments stick with people in ways banner ads just don’t.
  • Monitor Platform Shifts: Stay alert to how fast social and digital platforms are morphing with AI. TikTok and Snapchat move quickly, and a small algorithm tweak can upend your playbook overnight.
  • Rethink Customer Data: As privacy becomes a selling point, be transparent about data use. Companies who handle data responsibly and openly will be better positioned as privacy shifts from afterthought to competitive edge.
  • Prepare for Pricing Changes: If advertising subsidies fade, expect prices to go up. Make sure your business can handle tighter margins or higher costs if the digital discount era winds down.

My Take: Risks, Limits, and Open Questions

Emanuel’s faith in live events is both practical and telling. As AI makes online experiences hyper-personal—and often isolating—the draw of being part of something real, with others, could rise. But let’s not kid ourselves: not every business is built for live, and costs can balloon quickly.

The real test will be how companies blend live or hybrid experiences into what they already do, without blowing up their budgets or losing focus.

There’s also the open question: Will AI-powered ad delivery really sidestep today’s tech giants, or will they just buy or build the next layer? TikTok’s algorithmic leap shows incumbents can get caught flat-footed, but Meta’s quick pivot with Reels proves they can still adapt. The lesson: in digital, speed and a willingness to experiment are table stakes.

One more thing—generational shifts matter. Platforms with young, loyal users—like Snapchat—may not look impressive by old-school metrics, but they’re well-placed to benefit if they tap into AI. If your customers skew young, pay close attention to where their attention goes, and be ready to update your strategy as new platforms break out.

The Bottom Line

AI will keep shaking up how ads and content get delivered. Companies that focus on real engagement—through live events or smartly chosen digital platforms—will have an edge. Watch where your audience actually spends time, and be ready to recalibrate as the economics of attention keep shifting. The winners will blend technical flexibility with a sharp understanding of what people genuinely want.

Source: Conversation between Ari Emanuel and Ben Thompson, as published by Stratechery. Official website for MARI: unavailable. Official website for Muse: unavailable.