The video production industry is in the middle of a fundamental split. On one side, traditional agencies doing what they've always done: live-action shoots, big crews, long timelines, premium pricing. On the other side, a new category of AI-accelerated studios: smaller teams, digital-first production, faster turnarounds, different economics.
Both can produce great work. But they solve different problems, serve different budgets, and require different expectations.
The traditional agency model
Traditional video agencies — think Demo Duck, Wyzowl, Harmon Brothers, Sandwich Video — operate on a project-based model that's fundamentally unchanged since the advertising era.
How it works: Client submits a brief. Agency responds with a proposal. Rounds of creative development. Production (often involving shoots, actors, locations). Post-production. Delivery. Each step takes time and involves coordination.
Strengths:
- Proven process with decades of refinement
- Live-action capability for when you need real humans and real environments
- Deep experience across industries
- Established reputation and portfolio
Limitations:
- Pricing: per-project fees (premium agencies can run well into six figures)
- Timeline: 4-8 weeks per video
- Communication: vendor/client relationship with formal revision processes
- Volume: one video per engagement, not ongoing content
- Iteration: slow — each revision is a production cycle
The AI-accelerated studio model
AI-accelerated studios — this is where WithLore sits — use a fundamentally different production approach. Human creative direction with AI-powered production tools.
How it works: Studio embeds with the client team (often via Slack). Creative development happens collaboratively, not through formal briefs. Production uses 3D, motion graphics, and AI tools for rendering and iteration. Delivery is ongoing through a retainer model.
Strengths:
- Speed: days instead of weeks
- Cost: retainer model means more content per dollar
- Iteration: variations and revisions in hours
- Volume: continuous content stream, not one-off deliverables
- Flexibility: can switch production styles (3D, motion graphics, character animation) fluidly
Limitations:
- No live-action capability (everything is digital)
- Newer category — less established reputation
- Retainer model requires ongoing commitment, not one-time spend
- Digital production has a different aesthetic than live-action
The real difference: economics
The two models have fundamentally different economics, and understanding this is key to choosing the right one.
Traditional agency economics: High fixed costs per project (crew, equipment, locations, talent). Price is driven by production overhead. One video requires significant coordination. Margins come from premium pricing on individual projects.
AI-accelerated studio economics: Lower fixed costs per piece (no physical production). Price is driven by creative labor, not production logistics. Multiple pieces can be produced concurrently. Margins come from volume and retained relationships.
This means traditional agencies are optimized for producing one exceptional piece. AI-accelerated studios are optimized for producing consistent quality at volume.
Decision framework
Choose a traditional agency when:
- You need live-action content with real people and locations
- You have budget for a single tentpole video
- You're willing to wait 4-8 weeks for delivery
- You need the credibility of an established agency name
- The video is for a one-time use (conference keynote, investor pitch)
Choose an AI-accelerated studio when:
- You need ongoing video content, not a single project
- Speed matters — you can't wait 6 weeks for each video
- You need multiple production styles (3D, motion, character, AI cinematic)
- You want a creative partner, not a vendor
- Budget supports a monthly creative retainer for continuous output
Choose both when:
- You need a tentpole hero piece (agency) PLUS ongoing social and ad content (studio)
- You're a larger company with budget for specialized providers
Where the industry is heading
The traditional agency model isn't dying, but it's shrinking. The economics of digital production make the AI-accelerated model more efficient for most content needs. Live-action will always have a place for specific use cases, but the majority of SaaS video content will be produced digitally.
The agencies that survive will either adapt (adding AI production capabilities to their pipeline) or specialize (doubling down on premium live-action for clients who specifically need it).
For brands, the practical implication is clear: the days of paying six figures for a single video project are numbered. Not because the quality was bad, but because the model was designed for a different era.
The future is ongoing creative partnerships, not one-off projects. The sooner your video strategy reflects that, the better.
Evaluating your options? We've written honest comparisons for specific alternatives: Harmon Brothers alternative, Sandwich Video alternative, Synthesia alternative, and HeyGen alternative.
