The Walt Disney Co. has announced a partnership with TikTok that will allow users of the popular video platform to incorporate extracts from Disney films and characters into their content.
Disney described the agreement as a “first-of-its-kind” deal, saying it would bring creators closer to its Disney+ streaming platform through a curated feed of fan-created videos featuring its characters and stories.
“The agreement will bring creators to the forefront of Disney+, with a curated feed of fan-created content featuring our characters and stories,” the company said.
The entertainment company did not disclose financial details of the content-sharing agreement in its quarterly earnings statement, but said the move forms part of its broader strategy to use advanced technologies to strengthen storytelling, increase monetisation and improve returns.
Disney has already introduced vertical video feeds for previews of its Pixar, Marvel and “Star Wars” productions on Disney+, adopting a format similar to TikTok’s popular scrolling experience.
The announcement came alongside Disney’s latest financial results, which showed quarterly revenue increased by 7 per cent to $25.2bn.
However, the company’s net profit for the financial quarter ended June 27 fell to $2.8bn from $5.9bn recorded in the same period a year earlier, partly due to a higher tax bill.
Despite the decline in profit, the results exceeded expectations from most analysts, as Disney continues to focus on expanding its digital platforms and strengthening its relationship with online audiences.
