Lights out for Sora: Video licensing blueprint vanishes
OpenAI has switched off its video AI Sora, under pressure to streamline and monetise as Anthropic captures enterprise momentum.
Google remains as the dominant US video AI player, with more established media industry relationships. Video AI will coalesce around more targeted, industry-ready tech.
The media industry might not mourn Sora, but the unwinding of the Disney/OpenAI deal means it's back to the drawing board on establishing a model for extracting revenue when media IP is used in video AI.
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Disney’s decision to license to OpenAI’s Sora is necessary to regain agency in a consumer ecosystem dominated by rampant unlicensed IP usage. The deal reflects an ongoing pattern of opportunistic, equity-driven deals by Disney in high-profile technology categories.
Movie and TV content owners’ ability to replicate similar deals to protect their IP assets is limited by vague engagement pathways and opaque or non-existent revenue sharing models combined with dealmaking constraints at AI operators, some of which are developed in China.
Even within the parameters of a deal, the ongoing risk of a public display of malfunctioning guardrails with licensed IP is real, as it is on non-licensed models. In-house AI expertise and stronger copyright compliance will require additional investment to ensure slippery usage is minimised.
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AI music startups will relaunch their services this year enforcing labels’ red lines on copyrighted music. The music industry’s material impact on AI products is in stark contrast to video and news industry engagement.
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Rapid diffusion of AI products is pressuring all media sectors to take a radical approach to content and IP management (beyond tried and trusted online strategies).
2026 will be a bumper year of AI spend by big tech. Capex growth may moderate in 2027 but with an enduring cumulative impact as AI agents approach the mainstream.
Broadcasters are ramping up activity on YouTube, and as the rules of tech platform distribution change, the industry works to solve content licensing for AI.
AI and UK broadcasting: An arm’s length embrace
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There is clear value to be unlocked along the production pipeline with AI, and unrealised opportunities for content owners to apply AI to their libraries and enhance discovery.
None in the industry can ignore how AI changes the wider competitive landscape: new AI services will provide audiences with alternative products, and disrupt distribution.
Disney’s decision to license to OpenAI’s Sora is necessary to regain agency in a consumer ecosystem dominated by rampant unlicensed IP usage. The deal reflects an ongoing pattern of opportunistic, equity-driven deals by Disney in high-profile technology categories.
Movie and TV content owners’ ability to replicate similar deals to protect their IP assets is limited by vague engagement pathways and opaque or non-existent revenue sharing models combined with dealmaking constraints at AI operators, some of which are developed in China.
Even within the parameters of a deal, the ongoing risk of a public display of malfunctioning guardrails with licensed IP is real, as it is on non-licensed models. In-house AI expertise and stronger copyright compliance will require additional investment to ensure slippery usage is minimised.
Major music AI deals: A pivotal year begins with red lines in place
26 February 2026Major labels have announced a slew of AI deals designed to shape nascent technology on their own terms, and so avoid repeating the mistakes of the early streaming era.
AI music startups will relaunch their services this year enforcing labels’ red lines on copyrighted music. The music industry’s material impact on AI products is in stark contrast to video and news industry engagement.
Google’s decade-long interest in AI music is moving into action with the launch of Lyria 3 and the acquisition of ProducerAI as a leading exponent of advanced, AI-enabled music creation—YouTube remains a sleeping giant.
Rapid diffusion of AI products is pressuring all media sectors to take a radical approach to content and IP management (beyond tried and trusted online strategies).
2026 will be a bumper year of AI spend by big tech. Capex growth may moderate in 2027 but with an enduring cumulative impact as AI agents approach the mainstream.
Broadcasters are ramping up activity on YouTube, and as the rules of tech platform distribution change, the industry works to solve content licensing for AI.
AI and UK broadcasting: An arm’s length embrace
11 December 2025The UK broadcasting sector is undecided on how much to engage with a technology that could simultaneously threaten industry jobs, intellectual property, and competitive advantages. Some do not see themselves as in a position to take risks with AI, but the sector must consider the longer-term risks to inaction.
There is clear value to be unlocked along the production pipeline with AI, and unrealised opportunities for content owners to apply AI to their libraries and enhance discovery.
None in the industry can ignore how AI changes the wider competitive landscape: new AI services will provide audiences with alternative products, and disrupt distribution.