It's probably only a matter of time before we see the wisecracking duo of Rafiki and Jiminy Cricket wielding lightsabers on the icy plains of Arendelle.
Of course, this is all thanks to artificial intelligence and a new deal between Disney and OpenAI.
OpenAI announced Thursday that it has entered into a licensing agreement to use Disney characters and other intellectual property. Disney also plans to invest $1 billion in OpenAI and purchase ChatGPT Enterprise for its employees.
This is a major change for Disney, which has historically been fiercely protective of its intellectual property. And this is a big win for OpenAI, which is looking for more content to feed its AI models.
The deal will allow users to recreate Disney characters on OpenAI's short video generation app Sora and create images of Disney characters using ChatGPT.
Beyond the endless possibilities for creative content, this deal reveals much about Disney's strategy in the AI era and the impact of artificial intelligence on the future of entertainment.
Here's what some smart people in media, technology, and business are saying about this deal:
Nick Cicero, Entrepreneur and Digital Strategist
For Nick Cicero, founder of social media video analytics company Delmondo, which was acquired by Conviva in 2018, Disney's deal with OpenAI isn't about AI, it's about revenue.
Cicero claimed in Thursday's X post that Disney aims to solve two “existential” problems: creators using Disney's unauthorized content and children watching YouTube instead of Disney+.
“Sora provides Disney with the first scalable way to bring creator-generated content into its own premium ecosystem: brand-safe, traceable, legal, and CTV monetization-ready,” he said, referring to the practice of delivering targeted ads to internet-connected TVs.
“This movement is not about technology,” he added. “It’s about the physics of revenue.”
Peter Casasi, Media Consultant
Chatbots like ChatGPT rely on data to power their output, and AI companies are relentless when it comes to collecting that data.
The drive to collect data often puts AI companies and content creators at odds. A number of media companies are suing OpenAI, Anthropic, Perplexity, and other large AI companies for using copyrighted content without permission. Other media companies, including Business Insider's parent company Axel Springer, also have content licensing deals with AI companies.
Peter Casasie, a longtime media consultant and analyst, said the Disney-OpenAI deal is a “watershed” moment for AI and media licensing.
“This is a use of generative AI that makes sense to me, and I support it,” Csathy wrote on LinkedIn. “As these are fully licensed characters, we respect copyright and embrace partnership with the creative community (rather than intellectual property theft). It's a new revenue stream for intellectual property owners, and an overall joy for fans of these beloved characters.”
Caroline Giegerich, AI and Marketing Strategist
There are many, many cease and desist letters that media lawyers can send.
Carline Giegerich, vice president of interactive advertising and former head of emerging technology at HBO, said Disney's deal with OpenAI feels like a “you can't beat them, join them” moment.
“When I was at HBO from 2005 to 2009, when mobile video was just starting to take off, I was surprised by the sheer volume of cease and desist orders from our legal team,” she wrote on LinkedIn. “We thought it would be difficult to fight the entire internet, and it is. And AI has similar challenges.”
He also said the deal presents a valuable marketing opportunity for Disney.
“It's important to note that some of these fan-created videos are available to stream on Disney+. What this means to me is that Disney is also looking at this as a marketing and content opportunity, which it is,” she said.
James Miller, Head of Business Development, Amazon
Disney's shift from aggressively protecting its intellectual property at all costs to handing it over to one of the world's leading AI startups may be strategic for another reason.
James Miller, Amazon's head of business development for media, entertainment and Amazon creators, said this is a matter of “controlling the inevitable.”
All IP eventually becomes public domain. In 2024, the copyright on Mickey Mouse himself (at least the 1930s version without white gloves) expired, allowing anyone to use his likeness. Winnie the Pooh, Snow White, Cinderella, and several other Disney characters also entered the public domain at the same time.
“By officially licensing these characters, Disney will be doing three things,” Miller wrote on LinkedIn. “1. Monetize the AI trend, not just fight it in court. 2. Set quality standards for how characters appear in AI videos (likely to drown out lower-quality, unauthorized versions). 3. Get data on how fans want to use their IP before they lose exclusivity.”
Karl Haller, IBM Partner and Consumer Center of Competency Leader
One consumer expert said Disney may have been stymied by the deal.
“It looks like OpenAI used #jedimindwarp for the Walt Disney Company, not the other way around,” Carl Haller, an IBM partner and leader of the company's Consumer Center of Competency, said in a LinkedIn post.
He said he was “a little surprised” to see Disney license IP for Sora and other AI tools to OpenAI, allowing some of its videos to be streamed on Disney+.
“And what will Disney receive for this? Minus $1 billion,” he wrote. “Rather than receiving a hefty license fee, Disney is instead investing $1 billion in OpenAI and receiving warrants for further acquisitions in the future.”
Simon Pullman, Pryor Cashman Entertainment Co-Chairman
One entertainment lawyer pointed out that there are many unanswered questions about this contract.
“This is a pretty surprising story and leaves us with a lot of questions,” Simon Pullman, a partner at law firm Pryor Cashman, wrote on LinkedIn on Thursday.
“Will viewers want or accept 'AI UGC' on Disney Plus?” he wrote, referring to user-generated content. “Is it possible for Disney to ring the bell after three years without extending the license? How will it protect against abuse and brand damage?”
Mike Walsh, Technology Transformation Consultant and Author
Mike Walsh, CEO of consulting firm Tomorrow, says Disney's $1 billion bet on AI is the right decision for the media giant.
“By suing Midjourney and partnering with Open AI while warning Google, Disney is drawing a clear line in the sand,” Walsh wrote on LinkedIn on Thursday. “Remix culture will not disappear, but it will be licensed, managed, and designed on its terms.”
He added that Disney has always used this strategy to survive the new media era.
“The future of entertainment lies in companies that shape participation, not compete for it,” he wrote.
