00:00Paul, the first thing I thought of when this deal was announced, isn't this what, like, an entire strike was over?
00:07Didn't you have so many creators and actors flagging this exact thing as something that they wanted to head off?
00:13Yeah, and that was not even that long ago.
00:16Look how quickly things change.
00:18I mean, the warp speed with which AI is becoming integrated into our lives, but also becoming a huge part of what's going on with entertainment.
00:26You know, I think the main thing with the strikes was about protecting the likeness and the, you know, the voices of the actors.
00:34And this deal, as I understand it, with open AI and Disney prohibits that from using human talent likeness or voices, but does allow for the use of Mickey Mouse, Darth Vader, Iron Man.
00:47And that's really powerful.
00:49I think having these video tools where fans can even create content that Disney can then use is very interesting.
00:58It sort of opens it, democratizes the creative process.
01:02But I think the guardrails are really important.
01:05The content licensing, obviously, and the way that they integrate this, the business integration of open AI into Disney.
01:13Okay, one of those points, this idea that you can have content created by users with Disney IP, because Disney's been so protective of its IP.
01:23Yes.
01:23Is it, what does it say that they would allow something like that to happen?
01:28I think it just shows the inevitability of AI in that every company is going to have to figure out a way.
01:33It's not going away.
01:34And so to harness AI, I think for a company like Disney, you know, if you can't beat them, join them kind of thing, might as well embrace it.
01:42But put, again, the guardrails, having the, you know, the legalities are involved in really protecting talent, which I think is definitely what the actors, you know, the writers, producers are very interested in.
01:56And making sure that AI doesn't take away from that or doesn't compensate talent for their likenesses or voices.
02:07But I think this is more about Disney taking their classic brands, their classic characters, and opening up a whole new world, if you will, to Disney.
02:18More content on more platforms, some fan created.
02:21And, again, this is evolving so quickly that I think we're going to see a lot of changes, even in how other companies integrate AI into their business model, particularly in the entertainment space.
02:34Paul, can I be honest?
02:35The idea of more content is terrifying to me.
02:37There's already so much out there.
02:39There is.
02:41But I think it's all about, you know, kind of putting the Disney, in this case, Disney wants their brand out there.
02:47They are everywhere.
02:48And, you know, Reed Hastings was just talking about, you know, Netflix and the importance of AI.
02:54So every media company is going to either have to embrace this.
02:58They're not going to be able to ignore it.
02:59And for we, the consumer, you're right.
03:02It is a little scary.
03:03There's already so much out there.
03:05But then up to us to parse out what we want to see, what we don't, which platforms we want to, you know, pay for.
03:12And then also going out to the movie theater as well, which is a great option for people.
03:17And so, yeah, a lot of stuff going on right now.
03:20It's really kind of crazy.
03:21It is so crazy.
03:23You could write a book like A Barbarian's at the Gate, even just what's happening with Netflix and Warner Brothers Discovery and Paramount.
03:30Just on kind of a big picture level, Paul, I was speaking with Michael Wolff, the Activate co-founder who also used to run MTV.
03:37And he was saying that for Netflix, this is a must-do deal because of the IP that Warner Brothers Discovery has with it.
03:43I wonder if there's something here to that.
03:45And related to the Disney news, is IP all the more important in this day and age where you are able to put more content out there?
03:53And maybe what distinguishes that from slop is what sort of IP and what characters you're able to use.
03:59Well, they who control the IP control the landscape of entertainment.
04:04So Warner Brothers has had an incredible year at the box office.
04:08I mean, starting with the Minecraft movie and Sinners back in April, Final Destination Bloodlines in May, then going into F1 the movie, Superman, more recently Weapons, and The Conjuring Last Rites.
04:21They've been on an absolute roll.
04:23The formula that Warner Brothers has created for theatrical is really incredible, both on the distribution side and marketing.
04:33And then the theater owners do a great job getting those movies into theaters.
04:37I think what we want to see is that continuing.
04:40No matter who is in control, we need movies, right?
04:43We need content.
04:44And especially for theaters where the theatrical side fuels so much interest.
04:50And it's really important.
04:52I mean, I think that sometimes we lose sight of the fact that going out to the movie theater creates that FOMO factor.
05:00You know, you're in the moment and you're around other people.
05:03And then once those movies hit the small screen, movies that were in theaters first, they have more value, the more coveted.
05:10So I just, for me, and I think for a lot of us in the industry, we want to see that continue.
05:16That Warner's model has been so powerful this year.
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