Disney Says ‘Yes’ to TikTok

The Walt Disney Company and TikTok have entered into a “first-of-its-kind” agreement that will allow fans and creators to generate original content using Disney, Pixar, "Star Wars," Marvel, FX and more IP. The content will be authorized to share on both TikTok and Verts on Disney+, its new vertical video space on the Disney+ mobile app. No financial terms for the deal were made public.

The program will pilot first in the U.S. in the next several months, “with the intention of other markets to follow.” In this first launch, Disney has also announced its Disney Creator Ambassador Program, which will give proven creators more visibility across platforms, as well as some benefits like incentives, access to events and career development pathways.

This deal follows on the heels of the now dead $1 billion agreement that the House of Mouse signed with OpenAI in Dec. 2025. That partnership would have allowed OpenAI’s generative AI Sora Video tool access to Disney characters in a similar fashion. The deal fell apart when OpenAI squashed the Sora tool and former Disney head Bob Iger simultaneously passed the torch to new CEO, Josh D’Amaro.

The TikTok deal signifies yet another push for the company to innovate and get onboard with the inevitable – user-generated content is not going away. According to March’s Generation Alpha Survey 2026 from PwC, 89% of 13- to 14-year-olds have a smartphone, spending on average 3.6 hours a day on the devices. 46% of them use TikTok regularly. Says the report, “This data suggests that, over time, social media and gaming platforms become kids’ primary discovery engines, the places where brand preferences and purchase intent begins.”

TikTok has more than 1.5 billion global users. According to Grand View Research, the global creator economy market size is expected to grow from $310.4 billion in 2026 to $1.3 trillion by 2033.

As the world’s No. 1 Top Global Licensor, according to License Global, it is a no-brainer that Disney needs to continue to invest in its lifeline to younger viewers, meeting them in the style and on the platforms that they are increasingly moving toward. It’s also a means to hedge against a

speculated flagging in subscriber growth. Per Variety, Disney will no longer report on its combined subscribers for Disney+, Hulu or ESPN, a move that follows Netflix.

Other brand owners are on board for limited use sharing of licensed content. Hasbro announced in June the launch of Sixth Wall, its own proprietary AI studio that allows users to create original content with licensed characters and voices; while last year, Roblox launched its licensing platform that more easily enables studios to partner with creators on the gaming platform through content integration. First brand licensors on board with Roblox included Netflix, Lionsgate, SEGA and Kodansha for properties such as “Stranger Things,” “Twilight,” “Like a Dragon” and “Blue Lock.”

These deals are significant in that the fragmentation of content consumption continues unabated. Moreover, it is eliminating a key hurdle: copyright infringement and policing. By giving unfettered access to a controlled group of IP, Disney is joining the circus, not fighting against it. It’s monetizing its biggest threat, while servicing fans and building audiences.