Artificial Actors

Computer-generated actors might soon dominate the entertainment business because of holdup problems. Imagine that you want to hire an unknown actress for a new TV show that you will be producing. Thousands of qualified candidates apply. Most are so desperate to get acting work that they would actually pay for the privilege of starring on your show. If your show becomes a hit, however, you will be dependent upon the show’s stars. This year any of a 1,000 pretty actresses would do. After Debbie has been starring in your show for a couple of years, however, you will be desperately dependent on her staying.

Long-term contracts somewhat mitigate this actress holdup problem. You sign up the unknown actress only if she agrees to work, say, for five years at some agreed-upon salary. Contracts can’t provide a complete solution to actress holdup problems, however. First, a contract forcing someone to work for you for life at low wages probably wouldn’t be enforceable because it would too closely resemble slavery. Second, even if the actress is under a legally binding contract, she can still hold you up by suggesting that she will get sick, gain weight, or lose her acting talent if you don’t drastically increase her salary.

I suspect this actress holdup problem will someday be eliminated by computer-generated actors, because digital talent can be owned by the TV producers. Virtual slavery will thus protect producers from being held up by those annoying and greedy human beings.