U.S. TELEVISION MARKET — OpenAI and Disney are ending their partnership that could have brought AI-generated videos to Disney+. The companies plan to cancel their arrangement to feature a curated collection of AI-generated short-form videos from OpenAI's Sora platform on Disney+.

"We respect OpenAI's decision to exit the video generation business and to shift its priorities elsewhere," a Disney spokesperson said. OpenAI plans to shut down Sora, its AI video platform.

The partnership had given Sora permission to use iconic Disney characters like Mickey Mouse and Cinderella. Disney obtained rights to approve how its intellectual property was used in OpenAI's video platform. Disney took a billion-dollar stake in OpenAI as part of the arrangement.

"We appreciate the constructive collaboration between our teams and what we learned from it, and we will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators," a Disney spokesperson said.

Disney+ has recently added a new short-form feed on its app called Verts, similar to the short-form interface on the ESPN app. Other streaming services including Netflix, Peacock, and Paramount+ are exploring short-form video clips to boost engagement on mobile devices.

Josh D'Amaro said in his introductory memo that he wanted to prioritize "immersive, interactive, and personal ways for people to experience Disney."

According to Nielsen, Disney+ and Hulu had a combined 4.9% viewership share on U.S. televisions in January, up from 4.4% in May 2021. The services' viewership share peaked in July 2023. Meanwhile, YouTube's U.S. viewership share increased from 6% in May 2021 to 12.5% in January 2026.

Disney+ and Hulu have consistently raised their prices. YouTube features interactive comment sections that allow viewer engagement with content.