OpenAI introduces new controls in Sora

Industry Insights from Next Move Strategy Consulting

OpenAI, the creator of ChatGPT, is preparing to roll out new controls in its AI video-generation tool, Sora, that will let content rights holders decide how their characters are used. The company also plans to share revenue with those who grant permission. CEO Sam Altman noted posted in his blog that rights holders will soon have “more granular control” over character generation.

Altman stated that copyright holders, including TV and film studios, will have options such as the ability to prevent their characters from being used.

Rising Concerns Over AI Content and Intellectual Property

Concerns are increasing over AI-generated content and its implications for intellectual property rights, as companies seek to balance technological innovation with fair compensation for creators. This week, OpenAI launched Sora as a standalone app, initially available in the United States and Canada, allowing users to create videos of up to 10 seconds in length.

Sora’s Copyright Policy Sparks Hollywood Concerns

The app, which quickly gained popularity, enables users to create and share AI-generated videos, including content derived from copyrighted material, on social media-style streams. Its copyright policy is expected to generate friction in Hollywood, with sources telling Reuters that at least one major studio, Disney, has chosen to opt out of allowing its content to appear in the app.

OpenAI to Launch Revenue-Sharing Model for Copyright Holders

OpenAI plans to implement a revenue-sharing system for copyright holders who allow their characters to be used in AI-generated videos, according to CEO Sam Altman. He noted that users are producing far more video content than anticipated, often targeting niche audiences, highlighting the need for a monetization strategy. Altman acknowledged that the framework "will take some trial and error to figure out," but said the company will begin testing different approaches within Sora soon, before introducing a standardized model across its broader suite of products.

OpenAI Expands into AI Video

Microsoft-backed OpenAI released a Sora model for public use last year, marking its expansion into multimodal AI and positioning it against text-to-video tools from Meta and Google. Recently, Meta introduced Vibes, a platform that allows users to create and share short-form AI-generated videos.

Impact on the Artificial Intelligence Market - NMSC Analysis

OpenAI’s Sora and similar AI video tools are reshaping the AI market, offering both opportunities and challenges. While the technology drives innovation and user engagement, it also raises concerns about intellectual property and fair compensation for creators.

Positive Impacts:

• Innovation Acceleration: Multimodal AI video tools expand creative applications beyond text and image generation.

• New Revenue Streams: Revenue-sharing models incentivize content owners to participate, creating monetization opportunities.

• Increased Adoption: Standalone apps like Sora and Meta Vibes boost public interaction with AI technologies, accelerating mainstream adoption.

• Niche Market Engagement: AI-generated videos allow targeting of specialized audiences, increasing content diversity.

Negative Impacts:

• IP and Copyright Challenges: Use of copyrighted material without proper permissions may lead to legal disputes.

• Market Friction: Studios like Disney opting out highlight tensions between creators and AI platforms.

• Implementation Complexity: Revenue-sharing frameworks require trial and error, potentially slowing broader adoption.

• Regulatory Scrutiny: Growing focus on AI ethics and copyright law may increase compliance costs for companies.

Conclusion

OpenAI’s Sora is accelerating innovation in AI-generated video while raising important questions about copyright and fair compensation. By introducing granular controls and revenue-sharing models, the company aims to balance creator rights with technological growth, signaling both opportunities and challenges for the broader AI market.

Source: Reuters

Prepared by: Next Move Strategy Consulting