Tech Giants Aim to License Hollywood Content for AI Models

Alphabet, Meta Platforms and OpenAI are reportedly in talks with Hollywood studios to license content for their artificial intelligence video generation software.

The companies are developing technology that can create realistic scenes based on text prompts and have offered financial incentives to partner with studios, Bloomberg reported Thursday (May 23).

The discussions come as studios look for ways to use AI to lower costs while protecting their intellectual property, according to the report.

Studios are cautious about providing their films and TV shows to tech companies without control over how the content is used, the report said. The recent case of Scarlett Johansson demanding OpenAI to stop using a voice resembling hers in its chatbot highlights the concerns of actors and creators about the use of AI technology.

The potential financial gains from licensing content to AI companies are substantial, per the report. News Corp. this week agreed to allow OpenAI to use content from its publications in a deal worth over $250 million over five years. Warner Bros. Discovery has expressed interest in licensing some of its programs, while Walt Disney Co. and Netflix have shown interest in other types of collaborations but are not willing to license their content.

New tools like OpenAI’s Sora and Alphabet’s Veo promise to take AI capabilities in Hollywood to the next level, according to the report. These tools enable filmmakers to create vivid and hyper-realistic clips based on minimal descriptions. However, concerns about the impact on jobs and the need for industry regulations have generated both excitement and anxiety in Hollywood.

Actor, filmmaker and studio owner Tyler Perry has called for the industry to unite and develop regulations to ensure survival in the face of AI advancements, the report said. The music industry has taken a firm stance against AI use, with Universal Music Group suing AI startup Anthropic for allegedly copying song lyrics. Major studios have yet to sue tech companies over the use of AI, as they explore ways to make AI work for them rather than fighting against it.

One of the challenges in licensing content to AI companies is the potential tension between studios and their creative partners, per the report. Studios believe they have the right to license their movies, but actors and creators may want approval rights if their likeness or voice is used in AI models.