A little history lesson... Television was once considered a threat to Hollywood as you can see your favorite stars for free as oppose to going to a Warner Theater or a Paramount Theater and paying admission. Where as radio was wasn't a big deal as you had shows like Lux Radio Theater, the CBS Playhouse, the Kraft Music Hall hosted by Bing Crosby, the Six Shooter starring Jimmy Stewart, the Bob Hope show, and the Jack Benny show. Hell at the end of the Phil Harris/Alice Faye Show her credit was read as Alice Faye by arrangement of 20th Century Fox; since you were listening rather seeing...

Television was a death knell for theatrical cartoons as you could do them cheaper for TV

AI is no different because now some schmuck produce something with nearly production value but at a fraction time and cost.

What really scares Hollywood is competition... from outside the industry. think about it, someone produces a Star Wars product via AI that is surpasses what Disney is producing and its what people want. Or do a live action G1 accurate Transformers movie through AI.

It competition that really scares them especially now with the low effort slop we're being given by talentless hacks.