Think about this: It sounds steep but it’s priced right — for now.
Greetings from Atlanta. I’m here to keynote at the NCTC Winter Educational Conference.
Google’s Veo 2, the AI video generator unveiled in December, has a price tag that’s turning heads: 50 cents per second. That’s $30 a minute, $1,800 an hour. It sounds steep — until you stack it up against the cost of actual video production. Google DeepMind’s Jon Barron nailed it with his Avengers: Endgame comparison: that Marvel blockbuster ran $356 million, or roughly $32,000 per second. Veo 2 isn’t cranking out three-hour superhero sagas, but if the output suits your communicative goals, it’s a bargain. Barron’s right: this is priced to disrupt, not to gouge.
I think this pricing model is temporary. The AI video space is heating up fast—new tools from rival model builders are lurking around the corner, promising more options and downward pressure on prices. Google’s betting on Veo 2’s quality and precision to justify the per-second model. At the moment, they’re right. Veo 2 makes every other text-to-video engine seem like you’re using Stone Age tools to make cave paintings.
We’re heading toward a world where creative speed and cost redefine what’s possible. I unpacked this shift in my Sunday essay, “If You Tell the Difference, There Is No Difference”—it’s worth a read if you’re curious how AI’s quietly rewriting the creative rulebook. -s
P.S. We’re going to discuss AI-generated content in detail at the MMA CMO AI Transformation Summit (March 18, 2025 | NYC). I’m facilitating and co-producing this half-day invitation-only event which will provide insights into the strategies, technologies, and leadership practices for CMOs who are driving successful AI transformations across the world’s best marketing organizations. Request your invitation.
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He’s a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.