Disney agrees deal to let TikTokers use its films and TV shows in videos

Disney has reached an agreement with TikTok to permit creators to utilize clips from Disney films, encompassing its subsidiaries, in their videos. This will enable clips from renowned franchises such as Star Wars, Toy Story, and the Marvel Cinematic Universe to surface in videos, subsequently shared on Disney's short-form video platform, Verts.

The agreement will be implemented initially in the United States and subsequently extended to additional countries. Though financial specifics were not disclosed by either company, this pact comes in the wake of the dissolution of a $1 billion deal between Disney and OpenAI, which would have facilitated the utilization of Disney characters in AI-generated videos.

OpenAI ultimately terminated this agreement in March due to the shutdown of its AI video generation tool, Sora, which it deemed a shift in focus towards other business areas. Disney's Chief Marketing and Brand Officer, Asad Ayaz, expressed that the TikTok deal allows fans to celebrate their stories in innovative ways, highlighting the shifting focus from traditional fan marketing to empowering creators with the necessary tools.

Matt Navarra, a social media expert, noted that Disney must now provide fans with raw materials to market their content, a significant transformation from past practices. TikTok's platform witnessed an average of 6.5 million posts related to film and TV content daily last year, demonstrating the popularity of sharing clips from films and TV shows.

However, without explicit permission, these clips were frequently removed due to copyright issues, hindering the engagement of a broader audience with fan-created content surrounding major releases. TikTok stands to gain from the credibility of becoming a formal distribution partner to one of Hollywood's biggest studios, as Navarra pointed out.

The joint program will support select creators' videos and grant them access to exclusive events, a move aimed at repositioning Disney in the user-generated content space, following the abrupt shutdown of OpenAI's Sora tool. While the deal presents opportunities, it also carries risks, particularly concerning safety concerns surrounding TikTok under European online regulations.

Therefore, Disney may need to implement robust safeguards to curate and monitor the content generated by creators. Online creators and influencers have increasingly gained importance for brands' marketing strategies, as evidenced by a report from Oxford Economics, which revealed that YouTube content creators contributed £2.2 billion to the UK economy in 2024 and supported 45,000 jobs.

Even smaller influencers, despite having fewer followers, often possess highly engaged audiences, making them valuable assets for brands. Disney launched its short-form video platform, Verts, in the US in March, with plans for global expansion.