Disney and OpenAI are creating a new revenue stream through AI-generated character videos, formalized by a $1 billion investment and three-year licensing agreement. The deal grants Sora access to more than 200 characters from Disney’s entertainment portfolio.
The partnership announced Thursday allows Sora users to create short social videos featuring Disney characters based on text prompts. These AI-generated videos can be shared and viewed by fans, representing a new form of audience engagement and potential monetization. The agreement specifically prohibits the use of talent likenesses or voices.
Disney’s commitment to OpenAI extends throughout its business operations. The company will deploy OpenAI’s tools for new product development and customer experiences, while implementing ChatGPT across its workforce. This broad integration reflects Disney’s strategic view of AI as transformative to entertainment and business.
CEO Bob Iger described the collaboration as marking a critical juncture for the entertainment industry. He emphasized Disney’s intention to responsibly extend its storytelling capabilities through generative AI while protecting creators and their work. This messaging appears designed to address concerns from entertainment professionals.
Hollywood has generally maintained a cautious distance from AI companies, concerned about data protection and union relations. OpenAI has been in discussions with several major studios about Sora’s applications, but Disney’s agreement marks a significant breakthrough. The platform’s September update introduced social features, enabling users to generate videos from text descriptions, view community content, and produce AI avatars that can be incorporated into videos with appropriate permissions.