Just a few months ago, it seemed like Disney might come to the defense of artists around the world when it sued Midjourney, the company that develops one of the most popular AI image generators. But it turns out the animation giant doesn't have a problem with AI per se. I was just waiting for a deal so I could get something out of the technology.
The animation giant has now signed a deal with OpenAI to allow it to use more than 200 of its characters in Sora, the controversial AI video generator and “fake social media” app. And it could be the deal that changes entertainment as we know it.
OpenAI's October announcement of Sora 2 and the Sora iPhone app caused chaos after it reversed its intention to allow video generation using copyrighted IP by default. CEO Sam Altman expressed surprise that media companies and film associations said they were not happy about their IP appearing on an app that can produce videos such as racist depictions of Nazi SpongeBob SquarePants and Martin Luther King Jr., and advertisements for the children's toy “Epstein's Island.”
The company, which also owns ChatGPT, backtracked, saying it would only allow use of copyrighted IP if the owner opts in. Just two months later, Disney successfully opted in.
Under the three-year license agreement, Sora users will be able to generate short videos featuring characters from Disney, Marvel, Pixar and Star Wars, from Mickey Mouse to Lilo & Stitch, Black Panther, Deadpool and Darth Vader, as well as characters from Frozen, Inside Head, Moana, Toy Story, Zootopia and more.
Disney has had a difficult relationship with generative AI art so far. Disney's attempts to use AI were reportedly abandoned due to legal issues and concerns from actors, while Lucasfilm's AI Star Wars movies were simply embarrassing. The deal with OpenAI doesn't include human actors or voices, but it will also allow people to appear in videos alongside Disney characters.
In addition, Disney will invest $1 billion in OpenAI, giving it a stake in a company that is expected to remain in the red until the end of the 2010s. And to honor this agreement, Disney reportedly sent a cease-and-desist letter to Google asking it to stop allowing its Gemini AI image generator to reproduce Disney characters.
What benefits does Disney have? You can now use OpenAI's application programming interfaces to build new products and tools, and select videos created by Sora users will be available to stream on Disney+. This follows a recent licensing deal with Fortnite developer Epic Games to add game-like features to the streaming service.
“By connecting Disney's iconic stories and characters with OpenAI's breakthrough technology, we are putting imagination and creativity directly into the hands of Disney fans like never before, giving them a richer, more personal way to connect with the Disney characters and stories they love,” said Robert Iger, CEO of The Walt Disney Company.
But it seems like Disney intends to give up quality IP and benefit from AI instead.
