The Video Production Margin Curve: Where AI Output Stops Compounding

Video generators compress the cost of a first cut from days of crew time to hours of review, but that saving lands once per asset while the retainer renews monthly. Agencies that treat generation as a rendering layer under custom scripting and brand systems compound margin; agencies that resell templated avatars sell a commodity the client can buy directly. The strategic question is not whether to generate video, it is which part of the pipeline you own.