Google and Meta are offering Hollywood studios millions of dollars to secure licensing agreements that would allow the tech giants to train AI-generated video models on copyrighted material, according to reports.
The companies have reportedly proposed tens of millions of dollars for these deals. Google has specifically sought permission to use vast libraries of copyrighted content and may be willing to spend hundreds of millions of dollars. According to The LA Times, Google could pay a studio such as Disney / Pixar approximately $40 million for the rights to generate outputs featuring a single copyrighted character, with total payouts potentially reaching into the billions depending on the number of characters involved.
Studio Responses and Industry Risks
Responses from major studios vary. Warner Brothers Discovery has reportedly indicated a willingness to license some of its programs, while Disney and Netflix are reportedly unwilling to license their content, though they have expressed interest in other collaborations. Lionsgate previously entered a licensing deal with Runway in 2024.
While these agreements would provide a financial boon to studios, they carry risks. There are widespread concerns within the entertainment industry regarding how AI companies might leverage creative work. Additionally, the use of AI tools in production could lead to significant job losses for the entertainment workforce. Studios may also be wary of audience reactions, such as those following the use of AI in the production of Spider-Man: Brand New Day.
Strategic Goals for Tech Firms
For Google, these partnerships would serve as a tool to legitimize AI technology and shift the narrative surrounding its AI ambitions by associating its brand with official studio content. The company’s DeepMind arm previously entered a $75 million investment deal with A24 earlier this summer.
The efforts are part of a broader competition among AI firms to secure media licensing. Meta is reportedly considering payments to publishers for video, photo, and news content, while OpenAI recently announced a multi-year deal with NewsCorp to integrate news content into ChatGPT.
