Disney has entered into a groundbreaking partnership with OpenAI, investing USD 1 billion (approximately AUD 1.5 billion) to become the first major content-licensing partner for Sora, OpenAI’s short-form video generator. This deal marks a significant shift in how Disney, a company known for fiercely guarding its intellectual property, engages with artificial intelligence and creative content. Beginning in early 2026, users will be able to generate short clips featuring over 200 characters from Disney franchises, including Pixar, Marvel, and Star Wars.
The agreement will allow fans to create “fan-inspired” videos using iconic costumes, props, vehicles, and locations. A selection of these generated clips will be available on Disney+, enhancing the platform’s offerings. Additionally, Disney plans to integrate OpenAI’s technology internally, using it for new tools and products, including rolling out ChatGPT as part of its production workflow.
Industry Perspectives on the Partnership
Disney CEO Bob Iger has framed the partnership as a continuation of the long-standing relationship between technology and storytelling. He highlighted that the rapid growth of AI presents “an important moment for our industry,” aiming to “thoughtfully and responsibly extend the reach of our storytelling.” Meanwhile, OpenAI CEO Sam Altman views this collaboration as an opportunity for AI companies and creative leaders to innovate together, ensuring respect for creativity and expanding audience reach.
Despite the optimistic framing from both organizations, significant concerns have emerged from unions and creative professionals. Duncan Crabtree-Ireland of SAG-AFTRA has expressed “real concern” regarding the implications of the deal, emphasizing that workers do not want to see their creativity appropriated by AI models. Both Disney and OpenAI have assured the union that the agreement does not include performers’ images, likenesses, or voices.
The Writers Guild of America (WGA) has raised alarms about the potential impact on creative jobs and ownership rights. They argue that the deal “appears to sanction” the use of AI to replicate and distribute content that originated from human creators, raising questions about the ownership of intellectual property. The WGA plans to engage with Disney to ensure that the generation of user-created content does not infringe on the rights of writers.
Implications for the Creative Industry
The deal has broader implications for the future of the entertainment industry. Concerns revolve around the potential for studios to license extensive portions of their libraries to AI companies, which could fundamentally alter how content is produced and distributed. Unions, including Australia’s Media, Entertainment & Arts Alliance (MEAA), have cautioned that without regulatory intervention, the rise of AI could undermine creative jobs and fair compensation.
Historically, Disney has been proactive in defending its intellectual property rights. The company has previously issued legal challenges against AI firms that it claims are infringing on its copyrights. This includes a cease-and-desist letter sent to Google, accusing it of “massive” copyright infringement. The entertainment industry has been grappling with the ethical and legal implications of AI-generated content, particularly following instances of AI tools generating problematic imagery or deepfakes.
As Disney navigates this new partnership, questions remain about how it will balance innovation with the protection of creative rights. The deal does not immediately replace human talent; however, it signifies a pivotal moment in the intersection of technology and storytelling. Both fans and industry professionals will be watching closely to see how these developments unfold, especially regarding future contracts and legislation aimed at safeguarding the rights of creative workers. The outcome of this collaboration could redefine how storytelling evolves in the digital age.
