Disney's Sora-Generated Shorts to Debut on Disney+, But Iger Insists Core Slate Unaffected
Disney is preparing to integrate AI-generated video content into its flagship streaming service, with CEO Bob Iger telling investors that short clips created using OpenAI's Sora technology will debut on Disney+ in the coming months. The move, however, is not expected to alter the company's broader production strategy for films and series.
Speaking on Monday's quarterly earnings call, Iger outlined the initial fruits of a three-year partnership with OpenAI, announced last December. The deal involves a $1 billion investment from Disney into the AI startup, while OpenAI has licensed 250 Disney characters for an undisclosed sum. Iger positioned the integration as a targeted play for the booming short-form video market.
"This jump-starts our ability to have compelling short-form video on Disney+," Iger told Wall Street analysts. The first wave of content, he noted, will consist of user-created vertical videos capped at 30 seconds each, sourced from Sora's platform. The company hopes to eventually allow Disney+ subscribers to create their own short videos using Sora tools directly on the service. "It's a positive step in adding a feature we believe will greatly enhance viewer engagement," Iger added.
When questioned about potential spillover effects on Disney's core film and television divisions, Iger was unequivocal: "I don't really see that it will have any impact at all."
The announcement comes at a sensitive time for Hollywood. Major studios, including Disney, face heightened scrutiny over their use of AI as guilds prepare for contract negotiations later this year. The technology was a central fault line in the 2023 dual strikes by writers and actors, and concerns over job displacement and copyright erosion remain acute. Disney itself has been active on the legal front, sending a cease-and-desist letter to Google over alleged copyright infringement by its Gemini AI platform, even as it partners with OpenAI.
Iger framed AI's role at Disney in three broad categories: as a tool to aid creativity, a driver of production efficiency, and a means to forge deeper "connectivity" with audiences. The Sora videos are slated for a phased rollout, with a full debut expected sometime in fiscal 2026, which for Disney ends in September of that year.
Marcus Thorne, Media Analyst at Veridian Insights: "This is a classic hedge. Disney is dipping a toe into generative AI content where the financial and creative risks are low—short-form, user-generated adjacent clips. It's a smart, contained experiment that lets them learn and engage a younger demographic without betting the studio farm."
Lena Rodriguez, VFX Artist & Guild Member: "It's infuriating to hear 'no impact' when every announcement like this chills the room. They start with 30-second clips, then it's background assets, then it's whole scenes. This is death by a thousand cuts for artists, and the 'partnership' with OpenAI feels like a betrayal after the lawsuits against other AI firms."
David Chen, Tech Journalist at 'The Circuit': "The real story is the data play. Disney gets to study how users interact with AI-generated content featuring their IP. That 'connectivity' Iger mentioned is a two-way street—it's about training their own models on user behavior as much as it is about offering new toys."
Priya Sharma, Streaming Subscriber: "As a parent, I'm curious but wary. If my kids can safely make little Mickey Mouse cartoons, that's a fun feature. But if my feed gets flooded with low-quality AI slop, I'm reconsidering the subscription. The quality and curation will be everything."