Entertainment Industry Shifts as Disney Embraces AI Video

The entertainment industry is shifting as Disney embraces AI video technology through a $1 billion OpenAI investment and licensing partnership. The deal grants Sora access to more than 200 characters from Disney, Marvel, Pixar, and Star Wars franchises.
The three-year agreement announced Thursday allows Sora users to create short social videos featuring Disney characters through text-based prompts. These AI-generated videos can be viewed and shared across platforms, signaling a new direction for how entertainment companies approach fan-created content. The agreement specifically prohibits the reproduction of talent likenesses or voices.
Disney’s commitment to OpenAI encompasses both consumer and operational applications. The entertainment giant will deploy OpenAI’s tools for new product development and experiences, while implementing ChatGPT for employee productivity. This broad integration reflects an industry-wide shift toward AI adoption.
Bob Iger, Disney’s chief executive, characterized the partnership as marking a critical juncture for the entertainment sector. He stressed that Disney would approach generative AI thoughtfully and responsibly, ensuring the technology extends the company’s storytelling capabilities while respecting and protecting creative professionals. This language may set the tone for future industry approaches to AI.
Hollywood has generally resisted AI companies, concerned about data usage and labor relations. OpenAI has been in discussions with several major studios about Sora’s potential, but Disney’s agreement could catalyze broader industry adoption. The updated Sora platform, launched in September as an invitation-only app, allows users to generate videos from text prompts, explore content from other users, and create AI avatars that can appear in videos with owner permission.