…the companies say that the new model will be “customized to Lionsgate’s proprietary portfolio of film and television content,” and exclusive to the studio. The purpose will be to “help Lionsgate Studios, its filmmakers, directors and other creative talent augment their work.”

“Runway is a visionary, best-in-class partner who will help us utilize AI to develop cutting-edge, capital-efficient content creation opportunities,” said [Lionsgate vice chair Michael] Burns. “Several of our filmmakers are already excited about its potential applications to their preproduction and postproduction process. We view AI as a great tool for augmenting, enhancing and supplementing our current operations.”

Georgia offers a 30% credit on film and TV production costs, which has been used to subsidize hundreds of productions, including Marvel movies like “Black Panther” and shows like “Stranger Things” and “The Walking Dead.” The credit has transformed Atlanta into a major production hub, competing not only with California and New York but also with the U.K. and Canada.

Unlike most other states, Georgia does not limit the total amount of credits that can be issued annually. As the program has surpassed $1 billion in recent years, some lawmakers have begun to worry that it poses a risk to the state’s finances.

In February, the state House of Representatives passed a measure that would cap the amount of credits that could be bought and sold each year.

Since most entertainment companies are not headquartered in Georgia, they cannot use film credits to offset their own tax liability. Instead, they sell them at a slight discount to Georgia-based corporations or wealthy individuals. With a cap in place, they might be stuck with credits they could not monetize.

“We’re committed to giving artists, creators and studios the best and most powerful tools to augment their workflows and enable new ways of bringing their stories to life,” Runway co-founder and CEO Cristóbal Valenzuela said in a statement. “The history of art is the history of technology and these new models are part of our continuous efforts to build transformative mediums for artistic and creative expression. The best stories are yet to be told. Lionsgate has an incredible creative team and a clear vision for how AI can help their work — we’re excited to help bring their ideas to life.”

According to an individual with knowledge of the deal, top of mind for Lionsgate is opportunities with pre-vis and storyboarding. For example, if Lionsgate is weighing a greenlight for “John Wick 5,” Runway could use the first four Wick movies and the spinoffs to train an AI text-to-video model. When prompted with a script for “John Wick 5,” that model could then generate a more realistic storyboard approximation of the film; leadership would use that to make their decision.

From a studio’s perspective, it looks like an extraordinary opportunity: In the always-uncertain, always-expensive world of filmmaking, who wouldn’t want an idea of how the end product will look before you commit to spending millions?

North American movie exhibitors are set to invest $2.2 billion in new theater upgrades to take advantage of Hollywood’s overall box office rebound this year…

Theater makeovers by installing luxury recliners and other amenities aren’t new for the exhibition industry. But taking advantage of the current industry rebound — which included the summer success of Kingdom of the Planet of the Apes and Twisters — calls for recognizing that the box office per patron metric is partly driven by moviegoers paying extra for Imax and other premium theater offerings.

The latest investment from North American theater owners is set to go towards upgrading locations with laser projection technology and immersive sound systems, better food and beverage options…

…adding arcades and bowling to locations, and enhancing theater air conditioning, lighting, signage and carpeting.