Bob Iger shared Disney’s approach to artificial intelligence during the company’s Q1 2026 earnings call this molrning, addressing questions about the OpenAI partnership and how AI-generated content will be integrated into Disney Plus.
The Disney CEO clarified details of the company’s licensing agreement with OpenAI, which allows users to create 30-second videos featuring approximately 250 Disney characters through the Sora AI platform. The agreement specifically excludes human voices or faces and runs for three years, with Disney receiving payment for the license.
Short-Form Content Strategy
Iger explained that Disney will curate Sora-created videos for inclusion on Disney Plus, jumpstarting the platform’s short-form video offerings. The company has seen significant growth in short-form and user-generated content on platforms like YouTube and wants to add similar features to Disney Plus.
“What this deal does is by giving us the ability to curate what has been basically created by Sora onto Disney Plus is it jumpstarts our ability to have short form video on Disney Plus,” Iger said.
Disney plans to enable Disney Plus subscribers to create their own short-form videos on the platform using Sora tools. Iger noted that ESPN has already implemented short-form content in its new offering.
Three AI Opportunities
Iger outlined three areas where Disney sees AI providing advantages:
- Creativity: Using AI as a tool to help the creative process
- Productivity: Improving efficiency across operations
- Connectivity: Creating more intimate relationships with consumers and enabling more engaged interactions
No Impact on Programming
When asked about potential downstream effects on demand for new programming or archival content, Iger stated he doesn’t expect AI-generated content to impact Disney’s traditional programming at all.
The integrated experience combining Disney Plus and Hulu has already reduced subscriber churn, and Disney expects bundled subscribers to churn less overall. The company is developing technology for a one-app experience, which Iger said should arrive by the end of the calendar year.
Disney views AI implementation as part of its broader strategy to improve user experience and drive engagement on its streaming platforms while maintaining its core content offerings.
