Disney Strikes Billion Pound Character Rights Deal With OpenAI

Disney has reached a landmark agreement with OpenAI, the creator of ChatGPT, to sell character rights from its expansive portfolio in a deal valued at $1 billion, approximately £750 million. The three year partnership grants OpenAI access to over 200 Disney characters, including icons from Star Wars and Marvel.

Through this collaboration, fans will be able to generate images and short films featuring Disney characters by using OpenAI’s advanced technologies, including applications such as ChatGPT and the Sora video generation software. The scope of the agreement covers well known franchises such as Mickey Mouse, Frozen, Moana, Toy Story, Zootopia, alongside characters from the Marvel and Lucasfilm catalogues.

The arrangement specifically excludes voice rights and the likenesses of actors. OpenAI must also ensure that all depictions remain age appropriate, in line with Disney’s brand standards. Following the announcement, Disney’s share price saw an uptick of 1.5 percent, reflecting investor optimism regarding the potential commercial benefits of the move.

Disney’s chief executive, Bob Iger, described the deal as a strategic effort to integrate artificial intelligence with the company’s legacy of storytelling, positioning the agreement as a new gateway for fans to engage with Disney’s creative assets. Sam Altman, chief executive of OpenAI, emphasised this partnership as evidence of how technology firms and creative industries can collaborate responsibly while respecting intellectual property.

This alliance comes amid ongoing disputes between Hollywood studios and AI firms concerning intellectual property rights. Disney has initiated legal action against companies such as Midjourney over alleged copyright infringements related to AI generated images. There are also reports that Disney has sent a cease and desist letter to Google, accusing the technology giant of unauthorised use of its content in AI tools.

Concerns across the entertainment industry persist regarding the increasing capabilities of AI to produce synthetic actors and digital voiceovers. While leading figures and rights holders scrutinise the implications for creative professions, Disney’s agreement with OpenAI marks a significant development in the evolving relationship between artificial intelligence and the media sector.