One person familiar with the talks said access to Hollywood content could be important if Google wants its systems to work at the level required for major productions. “In order for Google’s tools and technology to be truly usable for large-scale film and TV productions, let alone cinematic exhibition, it is essential that their models be fine-tuned with highly dynamic content and metadata that only Hollywood studios have,” the person said.
The negotiations remain sensitive. Studios are weighing potential production benefits against concerns from actors, writers and other creative workers about how AI systems are trained and how their work, likenesses and characters might be used.
Representatives for Google, Disney and Warner Bros. Discovery declined to comment. NBCUniversal said it is not currently discussing the licensing of its intellectual property to Google for AI models.
The outreach comes as Google expands its relationships across the entertainment business. In June, the company invested $75 million in A24 through a partnership that includes collaboration around AI tools. Google also works with director Darren Aronofsky’s Primordial Soup. Those arrangements give Google access to filmmakers and other creatives who can provide feedback on tools designed for entertainment production.
Google’s position in Hollywood has changed considerably from its earlier disputes with studios over unauthorized copyrighted material uploaded to YouTube. Studios once viewed the platform as a major piracy problem, while Google maintained that it removed infringing material when identified.
The relationship later evolved as YouTube became an important distribution and marketing platform. Google also developed Content ID, which allows copyright owners to identify uploaded material and potentially collect advertising revenue from it.
That history remains relevant to current AI negotiations. Some entertainment executives are cautious about entering agreements that could give Google greater control over another emerging form of content distribution. “They are remembering and mindful of what happened years ago, where in the end Google and YouTube did what it wanted and it was really a pretty unregulated environment,” said Jonathan Miller, chief executive of Integrated Media and a former News Corp. executive.
One area under discussion involves licensing individual studio characters for AI-generated material. A person familiar with such deals estimated that licensing could average $40 million per character, putting a package of 100 characters into the multibillion-dollar range. Such agreements could give studios another source of licensing revenue. Google could also potentially participate in advertising revenue tied to AI-generated videos distributed through YouTube.
YouTube has separately spoken with studios and talent agencies about its likeness detection technology. The system is designed to identify AI-generated material that uses copyrighted content or alters celebrity faces.
One possibility under discussion is allowing rights holders or talent to keep some flagged videos online and monetize them rather than remove them. Justin Connolly, YouTube’s global head of media and sports and a former Disney executive, is involved in those conversations, according to people familiar with the talks.
Some studios, however, have raised concerns about the conditions attached to participating. Sources said certain companies were asked to give up their ability to sue Google in connection with the likeness detection program.
The negotiations are unfolding as Hollywood continues to establish limits around AI use. Writers, actors and other workers have objected to their work being used for AI training without permission or payment, while workers in fields such as visual effects have raised concerns about potential job displacement.
Existing labor agreements include protections governing AI use for writers, directors and actors. SAG-AFTRA has not been notified of any new licensing agreement between a major studio and an AI company, according to Duncan Crabtree-Ireland, the union’s national executive director and chief negotiator.
“The companies largely are moving carefully in this area,” Crabtree-Ireland said. “They rightly recognize that there are a lot of potential pitfalls, not only relating to creative talent and their rights and performances or other types of creation.”
Studios are nevertheless increasing their exposure to AI companies and technology. Disney selected AI companies including Promise and OpenArt for its accelerator program in July. Netflix acquired Ben Affleck’s AI film technology startup InterPositive for $587 million in March.
Disney also previously entered a licensing agreement with OpenAI that allowed AI-generated versions of Disney characters to appear on Sora. The arrangement ended after OpenAI shut down the text-to-video app and redirected resources elsewhere.
At the same time, Disney and other studios have pursued copyright lawsuits against AI companies. Disney also sent Google a cease-and-desist letter last year alleging that its copyrighted material had been used without authorization to train Google AI systems.
The competing pressures leave studios considering both enforcement and collaboration as they determine how AI will be incorporated into production.
“We’ve moved from the moment where there was a question, ‘Will we use AI?’ and now it’s a question of ‘How are we going to use AI?’” said Rob Rosenberg, a partner at Moses & Singer and former general counsel at Showtime Networks.
This analysis is based on reporting from Los Angeles Times.
Image courtesy of Griffith Observatory.
This article was generated with AI assistance and reviewed for accuracy and quality.
