Character-Based AI Content Opens New Revenue Streams for Disney

Character-based AI content is opening new revenue streams for Disney through a $1 billion OpenAI investment and licensing partnership. The three-year deal grants Sora access to over 200 characters while creating novel monetization opportunities.
Disney announced Thursday that the partnership enables Sora users to create short social videos featuring beloved characters based on text prompts. These AI-generated videos can be shared and viewed by fans, potentially creating new subscription, licensing, or advertising revenue streams beyond traditional entertainment models. The agreement specifically prohibits the use of talent likenesses or voices.
The collaboration extends throughout Disney’s operations. The entertainment company will utilize OpenAI’s tools for new product development and customer experiences, while deploying ChatGPT for employee productivity. This comprehensive approach positions Disney to monetize AI-generated content while exploring innovative business models.
CEO Bob Iger framed the collaboration as representing a pivotal moment for the entertainment industry. He emphasized Disney’s intention to responsibly extend its storytelling capabilities through generative AI while protecting creators and their contributions. These new revenue streams could fundamentally change Disney’s business model beyond traditional content production.
The entertainment industry has largely avoided AI partnerships, wary of data usage and union relations. OpenAI has engaged with several major studios about Sora’s potential, but Disney’s focus on new revenue opportunities demonstrates commercial vision. The updated Sora platform, launched in September with invitation-only access, enables users to generate videos from text prompts, explore content from other users, and produce AI avatars that can be incorporated into videos with appropriate permissions.