WEBVTT - Inside Disney and OpenAI’s Billion Dollar Deal

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>As AI generated images ping pong around the Internet. The

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<v Speaker 2>Walt Disney Company has mostly been playing defense. In June,

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<v Speaker 2>the entertainment company sued the AI image generator mid Journey

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<v Speaker 2>over copyright infringement after realizing the app could whip up

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<v Speaker 2>visuals of Yoda and frozens elsa that looked eerily similar

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<v Speaker 2>to Disney's own animations.

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<v Speaker 3>Lawsuit against mid Journey by a major Hollywood studio following

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<v Speaker 3>Disney and Universal's joint lawsuit.

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<v Speaker 2>And on the evening of December tenth, Disney sent a

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<v Speaker 2>cease and assist letter to Google, alleging the company was

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<v Speaker 2>using the studio's IP to train its AI models. But

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<v Speaker 2>just the next morning, Disney made a very different kind

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<v Speaker 2>of announcement.

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<v Speaker 4>Disney has decided, if you can't beat them, join them mad.

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<v Speaker 2>Disney came to a landmark agree with open Ai to

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<v Speaker 2>license more than two hundred Disney, Marvel, Pixar, and Star

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<v Speaker 2>Wars characters for use in the AI company's video generation

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<v Speaker 2>app Sora. As part of the three year licensing deal,

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<v Speaker 2>Disney agreed to take a one billion dollar stake in

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<v Speaker 2>open Ai, with the option to buy more shares in

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<v Speaker 2>the company. According to Bloomberg reporting, the deal to use

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<v Speaker 2>Disney's IP was done entirely in stock rather than a

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<v Speaker 2>cash licensing fee.

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<v Speaker 1>It was a big milestone for open Ai because the

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<v Speaker 1>company has been trying to strike deals in Hollywood with

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<v Speaker 1>major media companies for over a year and a half.

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<v Speaker 2>That's Sharene Gafari, who covers Ai for Bloomberg.

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<v Speaker 3>They've had some successes with publishers and not so much

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<v Speaker 3>with others. But what we have not seen yet though,

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<v Speaker 3>is them have a deal to actually use really valuable

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<v Speaker 3>studio IP, especially that of a company as iconic as

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<v Speaker 3>Disney with all of the characters that they own.

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<v Speaker 2>Reactions to the Disney OpenAI partnership have been mixed.

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<v Speaker 5>Everyone will be able to create Enatavii slop videos with

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<v Speaker 5>Disney characters using sora Ai. Disney finally figured out that

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<v Speaker 5>the thing people want to do most with their IP

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<v Speaker 5>is participate with it.

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<v Speaker 2>Bloomberg Entertainment reporter Thomas Buckley says some of the labor

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<v Speaker 2>unions representing artists and creators who work with Disney were troubled.

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<v Speaker 5>The right skilled came out very strongly against the deal,

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<v Speaker 5>likening it to theft.

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<v Speaker 2>Meanwhile, Disney's stock price has risen nearly five percent since

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<v Speaker 2>the news.

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<v Speaker 5>From a Disney perspective, it's really an evolution of the

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<v Speaker 5>mantra that Bobigo adpted a long time ago, which is

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<v Speaker 5>that you know, if you can't speed tech, then new

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<v Speaker 5>joint tech can you seek to profit from tech.

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<v Speaker 2>Here's Eiger, Disney's CEO, during an earnings call in November

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<v Speaker 2>before this deal was announced.

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<v Speaker 4>We've been in some interesting conversations with some of the

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<v Speaker 4>AI companies, and I would characterize some of them as

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<v Speaker 4>quite productive conversations as well, seeking to not only protect

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<v Speaker 4>the value of our IP and of our of engines,

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<v Speaker 4>but also to seek opportunities for us to use their

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<v Speaker 4>technology to create more engagement with consumers.

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<v Speaker 2>Sharene says besides being a big deal for the companies involved,

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<v Speaker 2>it could also be paradigm shifting across the entertainment industry.

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<v Speaker 1>Disney is viewed as sort of this gold standard in

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<v Speaker 1>terms of the mass appeal of its IP, of its characters,

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<v Speaker 1>in terms of protecting the brand right and making sure

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<v Speaker 1>that it's kid friendly. Disney is so international, so I

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<v Speaker 1>think it does sort of set this template of look

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<v Speaker 1>if Disney made a deal, then should other companies not

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<v Speaker 1>be so precious about their IP do something similar.

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<v Speaker 2>I'm Sarah Holder, and this is the big take from

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<v Speaker 2>Bloomberg News today. On the show Inside Disney and open

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<v Speaker 2>AIS billion dollar deal, will Mickey Mouse, Simba and Princess

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<v Speaker 2>Ariel Flounder or sore as the characters and company become

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<v Speaker 2>part of the world of user generated artificial intelligence. Bloomberg

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<v Speaker 2>Sharine Gafari says Disney and open AI's path to partnership

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<v Speaker 2>was a long and winding one.

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<v Speaker 1>As Thomas and I have reported about a year ago,

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<v Speaker 1>a little bit less than that, open AI and Disney

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<v Speaker 1>were not, you know, as far as we reported making

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<v Speaker 1>significant progress in their deal making talks, wasn't clear at

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<v Speaker 1>all they were going to be able to come to

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<v Speaker 1>any kind of agreement. There was widespread skepticism in the

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<v Speaker 1>media entertainment industry about if these kinds of deals would

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<v Speaker 1>really benefit media companies or would put their own IP

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<v Speaker 1>and their own talent at a steep disadvantage.

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<v Speaker 2>Bloomberg's Thomas Buckley says Disney was wary of how AI

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<v Speaker 2>could warp its material.

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<v Speaker 5>Mickey Mouse spraying bullets from an AK forty seven and

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<v Speaker 5>even worse. I think that that's especially what Disney took

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<v Speaker 5>grave concern with iconic Disney characters in situations that you

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<v Speaker 5>simply would never want to see a disas the character.

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<v Speaker 2>In those grave concerns, we're part of what led Disney,

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<v Speaker 2>alongside Comcast, the owner of Universal Pictures, to sue the

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<v Speaker 2>AI company mid journey earlier this year.

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<v Speaker 5>This is simply not how it wanted its ib to

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<v Speaker 5>be represented on screens, right, and specifically not in terms

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<v Speaker 5>of children either.

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<v Speaker 2>And Scharene says, just because Disney has struck a deal

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<v Speaker 2>with Open Ai, it doesn't mean the company is done fighting.

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<v Speaker 1>Disney is still taking a litigious approach in some sense

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<v Speaker 1>because they have sent a season to sister to Google,

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<v Speaker 1>which offers similar video and image generation products, right, and so,

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<v Speaker 1>on the one hand, while they're forging this deal with

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<v Speaker 1>Opening Eye, they are still wielding a more sort of

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<v Speaker 1>stick approach. If it's a carrot and stick strategy here

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<v Speaker 1>with others who they have not made deals with yet.

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<v Speaker 1>You know, it's sort of like, if you don't do

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<v Speaker 1>a deal, then there's a good chance that you're going

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<v Speaker 1>to get sued.

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<v Speaker 2>Right, well, Sharene, you have been tracking how open AI

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<v Speaker 2>has ramped up their efforts to woo movie studios this year.

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<v Speaker 2>Can you walk me through that strategy and why that's

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<v Speaker 2>been such a priority for the company.

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<v Speaker 1>Opening I really started kind of its courtship with the

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<v Speaker 1>media industry by talking to newsrooms, right. So you have

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<v Speaker 1>one of the first major deals they did on this

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<v Speaker 1>front to sort of be allowed to use IP being

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<v Speaker 1>with Axel Springer, the German media conglomerate. Then they start

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<v Speaker 1>to court Hollywood, right, and we have executives like Sam

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<v Speaker 1>Altman and Opening IICEO Brad Lightcap who's really been the

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<v Speaker 1>key deputy on these Hollywood and media deals. He has

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<v Speaker 1>been trying to sort of make inroads with media leaders

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<v Speaker 1>who are you know, I think rightfully skeptical about tech

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<v Speaker 1>and feel that they have been burned in the past

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<v Speaker 1>by going back to the advent of the Internet and

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<v Speaker 1>seeing sort of the value of IP everything from news

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<v Speaker 1>articles to movies that can be pirated sort of diminishing

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<v Speaker 1>with technologies and not seeing enough of a return on

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<v Speaker 1>it without a fierce legal battle. And I think it

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<v Speaker 1>took a lot of convincing trips to LA and to

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<v Speaker 1>New York to talk to the new rooms to talk

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<v Speaker 1>to the media leaders like at Disney to get them

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<v Speaker 1>on board with this, And it's still, I think, really

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<v Speaker 1>unclear if this is really an industry consensus that AI

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<v Speaker 1>is actually going to help the media industry, or if

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<v Speaker 1>it will actually end up sort of niecapping it in

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<v Speaker 1>an even more severe way than the streaming wars or

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<v Speaker 1>than the early kind of Google search era did.

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<v Speaker 2>What is open AI's argument here, What are they saying

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<v Speaker 2>about how using this classic IP will actually help the

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<v Speaker 2>media companies and how is that landing with these media companies, I.

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<v Speaker 1>Know, specifically with newsrooms for example, there is this idea

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<v Speaker 1>that it's sort of a win win because newspapers want

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<v Speaker 1>distribution for their articles and open aye wants accurate information

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<v Speaker 1>and its chatbot with entertainment something like Disney. It's a

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<v Speaker 1>little different, right, It's not necessarily maybe so much about

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<v Speaker 1>truth or accuracy, but about Hey, if people are going

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<v Speaker 1>to be making a bunch of videos, are going to

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<v Speaker 1>be engaging in a new form of entertainment in an

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<v Speaker 1>app that take over sort of social media in the future,

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<v Speaker 1>don't you want your characters on there in sort of

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<v Speaker 1>a controlled way and get some real business upside out

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<v Speaker 1>of it. I think that's the pitch.

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<v Speaker 5>What's interesting in terms of timing, you know, open AI's

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<v Speaker 5>overtures coalesced with the dual strike of actors and writers

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<v Speaker 5>back in twenty twenty three. I think that there was

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<v Speaker 5>a huge amount of concern as to how the likes

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<v Speaker 5>of likeness and scripts were going to be used to

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<v Speaker 5>train AI models without artists being compensated fairly. I think

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<v Speaker 5>that in the earlier stages of open AI's outreach to Hollywood,

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<v Speaker 5>there was no financial consideration beyond maybe open Ai paying

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<v Speaker 5>the licensees a fee that they didn't feel was commensurate

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<v Speaker 5>with the valuation of their IP. And so what that

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<v Speaker 5>means is that now there's a bit more of an impetus,

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<v Speaker 5>I suppose from a financial perspective for the media giants

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<v Speaker 5>to play in that space, and we started to see

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<v Speaker 5>more deals struck in the space. And think of example,

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<v Speaker 5>about Mattel's partnership with open Ai. Mattel not only a

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<v Speaker 5>toy makeup but also a producer of the film Barbie.

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<v Speaker 5>So I do think that, you know, it signaled a

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<v Speaker 5>turning point. For the beginning, it was very much minimal

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<v Speaker 5>financial upside, maximum reputational downside, and I think that that's

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<v Speaker 5>shifted a bit in recent months and weeks.

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<v Speaker 1>I think, you know, the media industry and entertainment industry,

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<v Speaker 1>like any industry, was watching to see, you know, how

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<v Speaker 1>the AI boom evolves. And when apps like chatchbt first

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<v Speaker 1>came out, it wasn't at all clear if this would

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<v Speaker 1>even stick right or if they would be able to

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<v Speaker 1>generate images or video at the incredible rate of progress

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<v Speaker 1>that they have. On a second level, you know, I

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<v Speaker 1>think really the news partnerships that open Ai did kind

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<v Speaker 1>of laid a little bit of a templative least for

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<v Speaker 1>this idea around licensing IP and as well as you know,

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<v Speaker 1>product collaboration. So this idea that okay, not only is

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<v Speaker 1>open ai going to be using Disney's assets, which is

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<v Speaker 1>its IP, but Disney will be using open AI's assets,

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<v Speaker 1>which is its technologies to further its own operation.

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<v Speaker 2>In addition to the potential gains for both companies if

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<v Speaker 2>things go well, there could also be a lot to lose.

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<v Speaker 2>That's after the break. The Walt Disney Company is over

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<v Speaker 2>one hundred years old and worth nearly two hundred billion dollars.

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<v Speaker 2>Open Ai is only about a decade old. And was

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<v Speaker 2>valued at five hundred billion dollars in October, so a

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<v Speaker 2>much younger company, not yet profitable, but worth a lot more,

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<v Speaker 2>and Disney now gets a billion dollar piece of it.

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<v Speaker 1>Disney's ip is obviously really valuable. So I was curious

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<v Speaker 1>about what was sort of in it for Disney and

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<v Speaker 1>was there actual cash exchanged.

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<v Speaker 2>That's Sharene Gifari who covers Ai for Bloomberg.

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<v Speaker 1>And what I found was that actually we confirmed was

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<v Speaker 1>no cash exchange is part of this deal, that it

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<v Speaker 1>was all stock, and that came in two main forms.

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<v Speaker 1>One is one billion dollars worth of equity that Disney's

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<v Speaker 1>investing now into open Ai. And then also Disney will

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<v Speaker 1>have the right in the future to have stock warrants

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<v Speaker 1>in open Ai. Right, so the ability to buy open

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<v Speaker 1>Ai stock at a future date for a set price.

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<v Speaker 1>And the idea here is that if open Ai grows

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<v Speaker 1>in value, Disney will benefit as well. So it's really

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<v Speaker 1>Disney taking a bet on the growth of open Ai

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<v Speaker 1>and particularly its video efforts.

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<v Speaker 2>Yeah, I mean, I know there has been some concerns

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<v Speaker 2>about overvaluation in the AI space. Is Disney's willingness to

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<v Speaker 2>sign this deeal sort of an affirmation that the company

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<v Speaker 2>thinks open AI stock still has a lot of growth

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<v Speaker 2>ahead of it.

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<v Speaker 1>I mean, you don't invest in a company if you

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<v Speaker 1>don't think that it's going to have upside, right, So

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<v Speaker 1>the facto, yes, now we're in the middle of what

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<v Speaker 1>a lot of people are worried is a major bubble, right,

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<v Speaker 1>a financial valuation bubble and even potentially technological bubble if

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<v Speaker 1>this technology doesn't keep improving at the rate it has.

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<v Speaker 1>So you know, this kind of ties Disney to this

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<v Speaker 1>larger economic kind of conversation about are we in an

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<v Speaker 1>AI bubble? Will these valuations go down? Is AI overhyped?

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<v Speaker 1>Until now, Disney didn't have a real stake in that

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<v Speaker 1>battle necessarily except for maybe companies ripping off of its IP.

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<v Speaker 1>But now it has skin in the game to win

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<v Speaker 1>or lose from AI more directly, I.

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<v Speaker 5>Think also what you have to assume forgetting the financial

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<v Speaker 5>implications is that the technology is only going to get

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<v Speaker 5>better and better.

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<v Speaker 2>That's Thomas Buckley, who covers entertainment for Bloomberg.

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<v Speaker 5>And so I think that video generation is here to stay.

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<v Speaker 5>User generation is certainly here to stay, and as a

0:12:45.720 --> 0:12:47.480
<v Speaker 5>result of that, I think that Disney is seeking a

0:12:47.480 --> 0:12:50.760
<v Speaker 5>way to play meaningfully in that space, in a way

0:12:50.800 --> 0:12:53.040
<v Speaker 5>that's safe, in a way that's ring fenced, and in

0:12:53.040 --> 0:12:55.920
<v Speaker 5>a way that might evolve its IP for the appeal

0:12:55.920 --> 0:12:56.960
<v Speaker 5>of younger generations.

0:12:57.200 --> 0:13:00.200
<v Speaker 2>I'm wondering how much control will they really get or

0:13:00.240 --> 0:13:03.960
<v Speaker 2>how their IP is used, Like what kinds of guardrails

0:13:03.960 --> 0:13:05.680
<v Speaker 2>are built into this agreement, if any.

0:13:06.040 --> 0:13:11.040
<v Speaker 5>I would assume that Disney's eventual control and promotion of

0:13:11.120 --> 0:13:14.280
<v Speaker 5>the output has to be paramount on the basis that

0:13:14.480 --> 0:13:18.240
<v Speaker 5>Barbaika has said that he would be seeking to actually

0:13:18.240 --> 0:13:21.240
<v Speaker 5>include some of the videos produced onto the Disney Plus

0:13:21.280 --> 0:13:23.600
<v Speaker 5>streaming platform, and so those would obviously have to be

0:13:23.679 --> 0:13:25.680
<v Speaker 5>very carefully vetted. They would have to be in keeping

0:13:26.200 --> 0:13:30.400
<v Speaker 5>with the characteristics that all of Disney's characters stand for,

0:13:30.600 --> 0:13:34.040
<v Speaker 5>with the belief system that Disney has sought to cultivate

0:13:34.160 --> 0:13:37.199
<v Speaker 5>with its content. So I would think that it's absolutely

0:13:37.240 --> 0:13:41.360
<v Speaker 5>paramount for Disney to retain some control over how its

0:13:41.440 --> 0:13:42.439
<v Speaker 5>characters are used and.

0:13:42.400 --> 0:13:45.319
<v Speaker 2>Displayed and sing the upside for open AI, as we've

0:13:45.320 --> 0:13:47.599
<v Speaker 2>talked about, seems pretty clear. You know, Soraa gets to

0:13:47.640 --> 0:13:49.760
<v Speaker 2>play with all these Disney characters. They get this huge

0:13:49.800 --> 0:13:53.160
<v Speaker 2>vote of confidence from a major household brand name. But

0:13:53.240 --> 0:13:55.040
<v Speaker 2>is there anything else that you can add about what

0:13:55.120 --> 0:13:58.880
<v Speaker 2>kind of monetary value might this add to Sora.

0:13:59.360 --> 0:14:02.680
<v Speaker 1>Yeah, I say that video generation is extremely expensive. It's

0:14:02.760 --> 0:14:06.240
<v Speaker 1>considered probably more expensive than text just because of how

0:14:06.400 --> 0:14:09.920
<v Speaker 1>rich images are to process and create. So if Sora

0:14:10.040 --> 0:14:13.240
<v Speaker 1>is going to actually make financial sense for open ai

0:14:13.480 --> 0:14:15.800
<v Speaker 1>as a product line, it needs to have users. It

0:14:15.880 --> 0:14:19.880
<v Speaker 1>needs to generate revenue in the long term. And while

0:14:19.920 --> 0:14:22.360
<v Speaker 1>Sora had this splashy launch it quickly rose to the

0:14:22.360 --> 0:14:24.960
<v Speaker 1>top of some of the app charts, it's sort of

0:14:24.960 --> 0:14:27.440
<v Speaker 1>come down in recent weeks and months, and I think

0:14:27.440 --> 0:14:30.520
<v Speaker 1>that it needs to have this kind of sustained user

0:14:30.600 --> 0:14:34.120
<v Speaker 1>growth if it is going to succeed, and Disney can

0:14:34.200 --> 0:14:37.840
<v Speaker 1>help that growth, right. Obviously, Disney's Kingdom comes with a

0:14:37.880 --> 0:14:40.880
<v Speaker 1>lot of fans who could be eager to riff on

0:14:41.680 --> 0:14:44.080
<v Speaker 1>their characters and AI in a way that maybe before

0:14:44.160 --> 0:14:46.520
<v Speaker 1>they wouldn't really care as much about using the Sora app.

0:14:46.840 --> 0:14:49.560
<v Speaker 2>I'm curious about what all this means for the artists

0:14:49.560 --> 0:14:54.520
<v Speaker 2>and the writers who originally created these characters for Disney Thomas.

0:14:54.600 --> 0:14:57.240
<v Speaker 2>I know the Writer's Guild of America was really upset

0:14:57.440 --> 0:14:59.280
<v Speaker 2>by this deal. I'm wondering if you could talk more

0:14:59.280 --> 0:15:03.240
<v Speaker 2>about how labor unions who work with Disney have been responding.

0:15:03.880 --> 0:15:06.920
<v Speaker 5>Absolutely so, a number of labor unions in Hollywood, and

0:15:06.960 --> 0:15:10.200
<v Speaker 5>really those that work most closely with Disney, including the

0:15:10.240 --> 0:15:14.320
<v Speaker 5>Animated Guild, the Writer's Guild of America, and SAG, the

0:15:14.520 --> 0:15:18.440
<v Speaker 5>union representing actors, all expressed the hard work of the

0:15:18.560 --> 0:15:21.840
<v Speaker 5>artists that they represent they would argue as being pilfered

0:15:22.280 --> 0:15:26.200
<v Speaker 5>through user generation. It's interesting to note, however, that on

0:15:26.240 --> 0:15:29.080
<v Speaker 5>the SAG side of things, the Screen Actors Guild likeness

0:15:29.080 --> 0:15:31.160
<v Speaker 5>and voice is not included as part of this deal.

0:15:31.480 --> 0:15:32.760
<v Speaker 5>So I think that it's more of a wait and

0:15:32.800 --> 0:15:33.720
<v Speaker 5>see approach there.

0:15:33.920 --> 0:15:37.160
<v Speaker 2>Right, because, of course, the Writer's Guild or the cartoonists

0:15:37.160 --> 0:15:39.960
<v Speaker 2>are not party to the stock being exchanged here, right, Like,

0:15:40.800 --> 0:15:43.760
<v Speaker 2>how are they able to be compensated for the work

0:15:43.800 --> 0:15:45.960
<v Speaker 2>that they did? Is that their underlying concern here?

0:15:46.240 --> 0:15:48.360
<v Speaker 5>I think that at certainly, at some point it will

0:15:48.440 --> 0:15:52.000
<v Speaker 5>become that. I think that fundamentally, it's very difficult to

0:15:52.080 --> 0:15:57.000
<v Speaker 5>trace the exact lineage of a user generated video to

0:15:57.240 --> 0:16:00.120
<v Speaker 5>an original storyline. I mean, for example, you're in inter

0:16:00.200 --> 0:16:03.920
<v Speaker 5>twining the likes of Cinderella with sleeping beauty as they

0:16:04.160 --> 0:16:06.800
<v Speaker 5>work in concerts takedown darth data. Does that mean that

0:16:06.880 --> 0:16:10.200
<v Speaker 5>absolutely every writer on the animation side of things and

0:16:10.200 --> 0:16:12.920
<v Speaker 5>on the style wars side of things gets compentpated? I

0:16:12.960 --> 0:16:15.160
<v Speaker 5>simply don't know how you would structure such a deal.

0:16:15.400 --> 0:16:19.160
<v Speaker 2>I'm also wondering about how investors in Disney have reacted

0:16:19.160 --> 0:16:22.080
<v Speaker 2>to this deal, Saran. What happens if Disney's investment in

0:16:22.120 --> 0:16:25.400
<v Speaker 2>open Ai doesn't pan out? If open Ai stocks tank?

0:16:25.440 --> 0:16:27.680
<v Speaker 2>If concerned about a bubble, you know, turn out to

0:16:27.720 --> 0:16:30.520
<v Speaker 2>be real, are Disney investors concerned about that?

0:16:30.880 --> 0:16:33.200
<v Speaker 1>Well, it certainly wouldn't be good for Disney if let's

0:16:33.200 --> 0:16:37.480
<v Speaker 1>say the Ai bubble berth and Open Aeye's valuation drastically drops.

0:16:37.640 --> 0:16:39.760
<v Speaker 1>I defer to Tomas on the exact specifics, but I

0:16:39.800 --> 0:16:42.680
<v Speaker 1>know that Disney's cash flow is a lot higher than

0:16:42.760 --> 0:16:46.440
<v Speaker 1>companies like open Ai, which are making money but losing

0:16:46.480 --> 0:16:48.200
<v Speaker 1>a lot of money essentially because of their high cost.

0:16:48.200 --> 0:16:49.880
<v Speaker 1>Disney is a highly profitable business.

0:16:50.160 --> 0:16:52.480
<v Speaker 5>A billion dollars is a fraction of Disney's marketcap. It's

0:16:52.520 --> 0:16:55.360
<v Speaker 5>even more of a fraction of Open Aey's valuation, so

0:16:55.640 --> 0:16:58.720
<v Speaker 5>they might see it as a large bolt on cost

0:16:58.880 --> 0:17:02.600
<v Speaker 5>but certainly nothing that might be transformational from a financial perspective.

0:17:03.200 --> 0:17:06.800
<v Speaker 5>Although could have transformational results, it concerns the IP and

0:17:06.920 --> 0:17:08.760
<v Speaker 5>I'm sure that Disney is hoping that it will have

0:17:09.119 --> 0:17:13.320
<v Speaker 5>transformational implications financially. However, if open A's valiation continues to saw.

0:17:15.560 --> 0:17:17.960
<v Speaker 2>You know, we started this conversation talking about the two

0:17:17.960 --> 0:17:22.800
<v Speaker 2>approaches entertainment companies have been taking with AI companies. Try

0:17:22.800 --> 0:17:25.880
<v Speaker 2>to beat them, try to hold on to your IP,

0:17:26.119 --> 0:17:29.600
<v Speaker 2>try to sue them for copyright infringement, or join them

0:17:29.760 --> 0:17:33.160
<v Speaker 2>strike a deal like Disney and open AI did. Does

0:17:33.280 --> 0:17:37.359
<v Speaker 2>this Disney open Ai deal set any new precedent for

0:17:37.520 --> 0:17:40.760
<v Speaker 2>how these relationships could work moving forward.

0:17:41.520 --> 0:17:43.439
<v Speaker 5>I think what's really interesting is that you have the

0:17:43.920 --> 0:17:46.520
<v Speaker 5>arguably the most iconic company in all of Hollywood, you know,

0:17:46.640 --> 0:17:49.919
<v Speaker 5>uniting with arguably the most widely recognized company in the

0:17:49.960 --> 0:17:53.000
<v Speaker 5>space of AI currently. So I think that the deal

0:17:53.040 --> 0:17:55.280
<v Speaker 5>between the two of them certainly signals that there might

0:17:55.320 --> 0:17:57.679
<v Speaker 5>be more to come. On the basis that Disney, I think,

0:17:57.720 --> 0:18:01.040
<v Speaker 5>has always prided itself on being able to look around corners.

0:18:01.040 --> 0:18:04.359
<v Speaker 5>You could argue they assembled this treasure trove of IP

0:18:05.000 --> 0:18:07.239
<v Speaker 5>in order to launch Disney Plus. And I think that

0:18:07.240 --> 0:18:10.159
<v Speaker 5>that showed an incredible amount of foresight. I would imagine

0:18:10.160 --> 0:18:12.880
<v Speaker 5>that bob Bieker is hoping that it might be interpreted

0:18:12.960 --> 0:18:15.080
<v Speaker 5>exactly the same way, in that it could be a

0:18:15.119 --> 0:18:19.359
<v Speaker 5>step forward into Disney characters interacting with its fan base

0:18:19.400 --> 0:18:21.040
<v Speaker 5>in a way that they never have before.

0:18:27.920 --> 0:18:30.879
<v Speaker 2>This is the Big Take from Bloomberg News. I'm Sarah Holder.

0:18:31.320 --> 0:18:34.200
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0:18:35.040 --> 0:18:38.600
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