Disney Partners with OpenAI for Sora Video App Featuring 200 Characters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Licensing Agreement: Disney has partnered with OpenAI to launch the Sora video creation app, allowing users to create short videos featuring 200 Disney characters, which may dilute the value of its intellectual property but creates new entertainment experiences for users.
- Market Competition: The launch of the Sora app could compete with YouTube Shorts, as the short video content doesn't need to be high quality but must be entertaining enough to attract users, potentially increasing engagement on Disney+.
- Investment Returns: Disney's investment in OpenAI amounts to $1 billion, and while the specific licensing fees remain unclear, this move could impact Disney's long-term profitability, particularly regarding intellectual property protection.
- Brand Impact: Although this initiative may generate short-term user interest, Disney must carefully manage its brand image in the long run to avoid dilution from user-generated content.
DIS
$113.95+Infinity%1D
Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DIS is 137.87 USD with a low forecast of 123.00 USD and a high forecast of 152.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
14 Buy
3 Hold
0 Sell
Strong Buy
Current: 113.560
Low
123.00
Averages
137.87
High
152.00
Current: 113.560
Low
123.00
Averages
137.87
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
