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Content production costs have skyrocketed, leading to a hollowing out of profit margins. Even with popular shows, the expenses can render them unprofitable. Marvel and Star Wars franchises, which were once considered safe bets for Disney, are not immune to this struggle. Studios have drastically cut budgets and have become far more selective about the projects they greenlight, even turning their back on countless pitches that would, in previous years, have received enthusiastic backing.
This shift has compelled major studios to not only tighten spending on new content but also to explore alternative solutions, including outsourcing production outside California and increasing reliance on artificial intelligence (AI) to tackle costs.