There are a few ways this can go. Depends, I think, on how the first attempts at AI-written content go. It’s a non-zero possibility that it can’t be made to not suck and the executive who put it out there becomes a laughing stock. But if it doesn’t completely suck, it will seep into all channels much the way reality TV did.
Could end up that human made content will be like theater is today, with a thin top layer of material that is expensive to see (like Broadway), and a lot of smaller, cheaper, local stuff.