Disney and TikTok have agreed a deal that gives some TikTok creators access to Disney's intellectual property, including photos and video clips from Marvel, Pixar, Star Wars and FX, alongside its flagship Disney properties. The companies described it as a first-of-its-kind global content-sharing arrangement.
Disney also said it would feature curated user-generated content on Verts, its own short-form video feed. Verts launched on Disney+ last spring but has so far consisted only of clips from Disney's own films and television shows. Under the new deal, TikTok videos will appear on the feed for the first time.
The arrangement is designed to work both ways. Alongside putting Disney content in front of TikTok's large user base, the company is aiming to keep viewers scrolling within its own app rather than leaving to browse elsewhere. Disney chief executive Josh D'Amaro told analysts on the earnings call that TikTok was a platform where millions of creators discover new intellectual property and that it was important for Disney to be present where fans were already engaging with its brands. Several rival streaming services, including Netflix, Paramount+, HBO Max and Peacock, have also moved into short-form vertical video in recent quarters.
A strong quarter for the new chief executive
The TikTok announcement coincided with D'Amaro's second earnings call as chief executive. Disney beat Wall Street's expectations for operating income and earnings per share, though revenue came in slightly below analyst estimates.
The company's experiences division, which covers theme parks, cruises and consumer products, had its strongest quarter yet, reporting record revenue of €10 billion, up 10% on the same period last year. Disney also said it had already sold out its advertising inventory for next February's Super Bowl, with 30-second spots priced at €10 million, according to the Hollywood Reporter.
Its theatrical slate delivered mixed results. Toy Story 5 performed strongly at the box office, while the live-action Moana and Mandalorian and Grogu underperformed. D'Amaro told analysts that even the weaker releases had driven spending elsewhere in the business, including merchandise sales and theme park visits.
Looking ahead, Disney said it was exploring the launch of a free, advertising-supported streaming channel, following the model of Roku and Tubi. The company added that it was continuing to look for cost savings despite recent layoffs.
