In what could be a groundbreaking move for a major Hollywood studio, Disney has partnered with OpenAI and decided to invest $1 billion in the artificial intelligence giant run by Sam Altman, adding that users of the company's AI video creation platform Sora will be working with Marvel, Pixar, star wars franchise.
The deal suggests that studios may be trying to embrace, rather than fight, AI startups that already allow users to infringe on their intellectual property. This idea, at least, allows Hollywood companies to monetize their intellectual property through favorable licensing deals, instead of completely disrupting their business and not getting anything done. The big question may be whether it ultimately destabilizes the production and content creation side of the entertainment industry.
For now, short video creation is the order of the day, and Disney+ will now allow “fan-inspired Sora short videos” on the platform. This is a product addition hinted at by studio chief Bob Iger during his Nov. 13 earnings call. As examples, Disney included images of a fan wearing a Star Wars costume and holding a lightsaber, another fan surfing large waves with Stitch on the edge of a surfboard, and another standing at the start line of a race next to a Pixar vehicle. car.
Given Disney's cautious approach to the brand, this move could soon begin to legitimize Sora across the industry. It's a reversal from the scorn and hostility Sora faced when it launched in late October with an invite-only launch, when Altman's product debuted features such as the ability for users to create videos with celebrity likenesses and have them say or do whatever they want, before pulling those features back after backlash. At the time, all of Hollywood's major talent agencies were particularly vocal about Sora's subversive elements, with WME, CAA, and UTA joining their clients in taking a stand against this exploitative product.
“Technological innovation continues to shape the evolution of entertainment, giving us new ways to create and share great stories with the world,” Bob Iger said in announcing the deal. “The rapid advances in artificial intelligence are a critical moment for our industry, and through this collaboration with OpenAI, we are expanding the reach of generative AI storytelling in a thoughtful and responsible way, while respecting and protecting creators and their work.A Disney icon By connecting Disney's stories and characters with OpenAI's breakthrough technology, we put imagination and creativity directly into the hands of Disney fans in a way never seen before, giving them a richer, more personal way to connect with Disney characters and stories.'' ”
Before Disney's move, arguably the studio's biggest partnership with an AI company was Lionsgate's deal with Runway last September. That agreement was a training data agreement that gave Runaway access to titles from Lionsgate's 20,000-title library in order to “develop cutting-edge, capital-efficient content creation opportunities.” Disney's investment in OpenAI sidesteps the library training issue, but the studio is firmly on the side of seeing AI as a growth opportunity for licensing deals to further monetize its treasure trove of IP.
“Disney is the global gold standard for storytelling, and we're excited to partner with Sora and ChatGPT Images to expand the ways people create and experience great content,” said Sam Altman, co-founder and CEO of OpenAI. “This agreement demonstrates how AI companies and creative leaders can work together responsibly to foster innovation that benefits society, honors the importance of creativity, and helps works reach vast new audiences.”
From a deal-making perspective, Iger's move is reminiscent of the company's $1.5 billion equity investment in Epic Games last February to bring Disney characters to Fortnite in a multi-year effort to woo audiences. Iger described the grand deal at the time as “an important step in looking at demographic trends and thinking about where Gen Alpha, Gen Z and even Millennials are spending their time in media.”
This will continue in the future.
