Generative AI will never produce an experience like that. I know never is a long time, but I’m still gonna call it. You simply can’t produce such a fresh idea by gathering a bunch of data and interpolating.
Maybe someday enough AI will be good enough to create shorter or longer videos with some dialog and even a coherent story (though I doubt it), but it won‘t be fresh or creative. And we humans will at best enjoy it for its stupidity or sloppiness. Not for its cleverness or artistry.
The AI isn't creating the fresh ideas. People are.
Saying that large video models will be in theaters sounds like a completely different and much more ambitious prediction. I interpreted it as if large video models will produce whole movies on their own from a script of prompts. That there will be a single film maker with only a large video model and some prompts to make the movie. Such films will never be in the theater, unless by some grifter, and than it is certain to be a flop.
This is the at-first-fun-but-now-frustrating infinite goal move. "AI (a stand in for literally anything) will do (anything) soon." -> "It won't do (thing), it's too complex." -> "Who said AI will do (thing)?"
Generative AI will not be able to approach the artistry of your average actor (not even a bad actor), it won’t be able match the lighting or the score to the mood (unless you carefully craft that in your prompt). It won‘t get creative with the camera angles (again unless you specifically prompt for a specific angle) or the cuts. And it probably won’t stay consistent with any of these, or otherwise break the consistency at the right moments, like an artist could.
If you manage to prompt the generative AI to create a full feature film with excellent acting, the correct lighting given the mood, a consistent tone with editing to match, etc. you have probably spent much more time and money into crafting the prompt than would otherwise have gone into simply hiring the crew to create your movie. The AI movie will certainly contain slop and be visibly so bad it guaranteed will not be in theaters.
Now if you hired that crew to make the movie instead, that crew might use AI as a tool to enhance their artistry, but you still need your specialized artists to use that tool correctly. That movie might make it to the theaters.
In music you also have plenty of artists that have no clue how to play their instruments, or progress their songs, but the music is nonetheless amazing.
Skill is not the only quality of art. A brilliant artist works with their limitation to produce work which is better than the sum of its part. It will take AI the luck of ten billion universes before it produces anything like that.
So no I don’t think this will happen either. Authors may use use AI them selves as one tool in their tool box as they write their script, but we will not see entire production screen plays being written by generative AI set for theatrical release. The industry will simply not allow that to happen. At most you can have AI write a screen play for your own amusement, not for publication.