Here is a great example on how co-creation is used in the entertainment industry. This project is called the Entertainment Experience where the audience is given the opportunity to make their own movie closely accompanied by acclaimed experts. The first three minutes of the script are given, but based on that the audience can create the remaining of the movie. Every part of the creation of the movie is done by the audience: script writing, acting, editing, directing etc. If you lack the talent to contribute directly to the movie, you still have the possibility to be involved because the audience votes on what will be used in the end movie. Together they will create the first user generated movie.
On the website – http://www.entertainmentexperience.com/ – there is a movie that explains how it works.
It will be interesting to see how successful the end result will be. Will this be the future for Hollywood?