The three-year partnership announced Thursday is a pivotal step in Hollywood's embrace of generative artificial intelligence and circumvents industry concerns about AI's impact on creative work and intellectual property rights.
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As part of the licensing agreement, Sora and ChatGPT Images will begin producing videos featuring licensed Disney characters such as Mickey Mouse, Cinderella, and Mufasa starting early next year. This agreement excludes any likeness or voice of the talent.
“Through our collaboration with OpenAI, we will thoughtfully and responsibly expand the scope of storytelling through generative AI, while respecting and protecting creators and their work,” said Disney CEO Bob Iger.
Hollywood unions, which monitor the growing use of generative AI, reacted cautiously to the deal.
negotiations began long ago
Iger and OpenAI's Sam Altman began talks years ago about how to demonstrate the potential of generative AI in combination with Disney characters and stories, according to people familiar with the talks.
Before the opening, OpenAI proposed that the studio release its image generation tool Sora early, said a person familiar with the negotiations, who requested anonymity to discuss the negotiations, adding that Disney determined that OpenAI was willing to engage in the dialogue constructively.
Iger previewed some of the strategy during a November investor call, saying AI will allow the company to give Disney+ users the tools to create and consume user-generated content, primarily in short-form format.
As part of the deal with OpenAI, user-selected videos will be available to stream on Disney+, allowing the streaming platform to capitalize on the growing appeal of short-form video content.
The media conglomerate will also receive warrants to purchase additional shares in the ChatGPT maker.
The companies will use OpenAI's models to build new products and customer experiences, including for Disney+ subscribers, while Disney will introduce ChatGPT for employees.
The deal also includes guardrails to prevent characters from being portrayed in inappropriate situations. Disney also plans to use OpenAI's tools internally to support film production to improve efficiency, people familiar with the matter said.
Animator expresses concerns about compensation
Animation Guild President Danny Lin said compensation for artists is a concern for the union.
Although the animators do not own the rights to Disney characters, “we are certainly the reason they exist and why they have the potential to be so profitable,” Lin said.
The Writers Guild of America announced it will be in talks with Disney to examine how much of its members' workforce is used for user-generated videos.
“Disney's announcement on OpenAI appears to sanction Disney's theft of our work and transfer the value of what we create to the technology companies that have built their businesses on our backs,” WGA leaders said in a memo to members.
SAG-AFTRA, which represents actors and other entertainment workers, said Disney and OpenAI contacted the union and assured them that the agreement ensures ethical and responsible use of the technology.
“The ongoing dialogue reflects an important commitment to consider the concerns of SAG-AFTRA members in the safeguards that apply to image, likeness, voice, performance, and intellectual property rights generally,” the union said in a statement.
But eMarketer analyst Ross Venez said union power is limited and “unlikely to stop the media momentum that AI is creating.”
Reporting by Dawn Chmielewski in San Francisco, Lisa Richwine in Los Angeles and Deborah Sofia, Harshita Mary Varghese and Anhata Rooprai in Bengaluru. Editing: Arun Koyyur, Rod Nickel
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