Disney Plus Plans AI-Generated Content Creation Features Despite IP Protection Concerns

Reviewed byNidhi Govil

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Disney CEO Bob Iger announced plans to integrate AI-powered user-generated content creation tools into Disney Plus, allowing subscribers to create and consume short-form AI videos while the company navigates intellectual property protection challenges.

Disney Embraces AI for Streaming Platform Transformation

Disney CEO Bob Iger announced during the company's fourth-quarter earnings call that Disney Plus will soon feature AI-powered content creation tools, marking what he described as "the biggest and the most significant changes from a product perspective, from a technology perspective since we launched the service in 2019."

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Source: The Verge

Source: The Verge

The entertainment giant plans to provide Disney Plus subscribers with the ability to create and consume user-generated AI content, primarily in short-form video format. "The other thing that we're really excited about, that AI is going to give us the ability to do, is to provide users of Disney Plus with a much more engaged experience, including the ability for them to create user-generated content and to consume user-generated content -- mostly short-form -- from others," Iger explained during the earnings call.

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Gaming Integration and Platform Expansion

Beyond AI-generated content, Disney plans to integrate gaming features into Disney Plus through its partnership with Epic Games. While many collaborative projects will remain on Epic's platform, the deal "gives us an opportunity to integrate a number of game-like features into Disney Plus," according to Iger. This strategy mirrors Netflix's approach, which already offers mobile gaming and plans to expand video games to television platforms.

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The streaming service will also serve as an "engagement engine" for Disney's broader ecosystem, including theme parks, hotels, and cruise operations, with commerce opportunities integrated throughout the platform.

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Intellectual Property Protection Challenges

Disney's embrace of AI-generated content represents a significant shift for a company historically protective of its intellectual property. The entertainment giant has previously taken legal action against multiple AI platforms, including sending a cease and desist letter to Character.AI and filing copyright infringement lawsuits against Midjourney and Hailuo for unauthorized use of Disney characters.

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Source: Futurism

Source: Futurism

Iger acknowledged these concerns, stating that Disney has had "productive conversations" with AI companies to develop partnerships that would "reflect our need to protect the IP." However, he did not specify which companies Disney is negotiating with or provide a timeline for implementation.

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Past AI Controversies and Public Reception

Disney's AI initiatives have previously faced public backlash. Marvel Studios encountered criticism for using AI-generated imagery in the opening credits of "Secret Invasion" in 2023, and again in 2024 over allegations that promotional posters for "The Fantastic Four: First Steps" featured AI-generated elements.

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Internal reports suggest Disney had explored using generative AI in productions like the live-action "Moana" remake and "Tron: Ares," but ultimately abandoned these plans due to copyright concerns and potential public backlash. The company's Fortnite collaboration also faced issues when an AI-voiced Darth Vader character had to be updated after players manipulated the generated voice inappropriately.

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Source: Gizmodo

Source: Gizmodo

Industry Context and Future Implications

The announcement comes as Disney Plus added 1.5 million subscribers in the US and Canada during the fourth quarter, bringing its North American total to 59.3 million subscribers. The platform recently increased prices across all subscription plans.

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Disney's move into user-generated AI content follows the controversial launch of OpenAI's Sora app, which has faced criticism for copyright infringement and problematic content generation. The success of Disney's AI integration will likely depend on effective content moderation and maintaining the platform's family-friendly reputation while navigating the complex landscape of AI-generated content featuring beloved Disney characters.

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