Disney and OpenAI and short videos, oh my!

Summary

Marketplace Morning Report

Episode: Disney and OpenAI and short videos, oh my!

Date: December 23, 2025
Host: Sabri Benishour (in for David Brancaccio)

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Overview

This episode dives into the latest business headlines, with a strong focus on the surprising GDP growth in the U.S., significant regulatory actions around Chinese-made drones, and the groundbreaking deal between Disney and OpenAI’s Sora video platform. The implications of AI-generated content, union concerns, and shifts in media consumption—especially by young audiences—are key topics. The episode features expert analysis from Larry Adam of Raymond James and Virginia Dulgast of Cornell University.

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Key Discussion Points & Insights

1. U.S. Economic Growth and GDP Update

[00:46 – 03:13]

• The U.S. GDP grew at an annualized rate of 4.3% in the third quarter—a notable uptick compared to previous quarters.
• Growth was “broad based”: strong consumer spending, a near 9% increase in exports, and a 2.2% rise in government (mainly defense) spending.
• Larry Adam stresses the data is “fairly old” by economic standards (reflecting July–September).
• Holiday spending remains healthy: Mastercard’s survey shows a 3.9% increase so far this season.
• Looking ahead, Larry Adam predicts 2026 will see further GDP growth due to tax bill rebates, “about $1,000” on average per consumer.

Notable Quotes:

• Larry Adam [01:24]: “For GDP, I think that’s a very good, very solid number...pretty broad based strength in that number. But...this number is fairly old.”
• Larry Adam [02:05]: “You’re going to see some temporary softness in the economy...but...spending so far through the holiday shopping season is up about 3.9%.”

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2. U.S. Ban on Foreign (Primarily Chinese) Drones

[03:52 – 05:14]

• The FCC, under Congressional mandate, is banning new approvals of foreign-made drones and critical components, citing national security risks around surveillance and data collection.
• Chinese company DJI dominates U.S. commercial drone sales (over 50%) and supplies 80% of drone programs in law enforcement and disaster relief.
• DJI claims the FCC’s move is protectionist and not evidence-based.
• The Commerce Department is also considering separate import restrictions.

Notable Quotes:

• Nova Safo [04:25]: “The FCC says a national security review found unacceptable risks from not just Chinese made drones, but from those produced in all foreign countries.”

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3. Disney and OpenAI Sora: A New Era in Media

[05:14 – 08:38]

• Disney is the first major media company to partner with OpenAI by licensing content to Sora, the short-form video AI platform.
• The deal includes a $1 billion Disney equity investment in OpenAI, licensing of “hundreds of Disney owned characters,” and Disney’s purchase of ChatGPT Enterprise.
• Disney will have rights to user-generated videos created on Sora and may stream this fan content on its own platforms.
• There’s industry skepticism: Will traditional audiences want “random” fan-generated content featuring beloved characters? Young viewers are migrating toward YouTube-style short form clips, contributing to Disney’s declining viewership.
• Industry unions (WGA, SAG-AFTRA) are wary. Protections from recent strikes (e.g., no digital replicas of performers without explicit consent) are reflected—Disney/OpenAI’s deal excludes likeness/voices of real actors.
• Unions warn this could lead to fewer jobs for in-house writers, animators, and actors if fan content substitutes traditional studio production.

Notable Quotes:

• Virginia Dulgast [05:47]: “Disney is making this $1 billion equity investment in OpenAI... Also then they’re licensing hundreds of Disney owned characters to sora... Disney is owning the rights to user generated videos... Also as part of the deal, Disney’s going to be a customer of OpenAI.”
• Virginia Dulgast [06:38]: “There is a large and growing audience for these kind of short form clips... Disney has declining viewership, whereas these platforms like YouTube have increasing numbers of particularly young viewers going there.”
• Virginia Dulgast [07:19]: “SAG-AFTRA... won a series of AI protections... studios can’t make digital replicas of a performer’s voice or likeness unless they give advance notice and get written informed consent.”
• Virginia Dulgast [08:04]: “If Disney’s posing user generated videos on Disney, will this mean less original material produced by their own writers, animators and actors?... Will they need fewer employees as a result?”

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Memorable Moments & Segments

| Timestamp | Segment | Highlight | |-----------|---------------------------------|-----------------------------------------------------------------------------------------------| | 00:46 | U.S. GDP News | “The gross domestic product ... grew at an annualized rate of 4.3% in the third quarter.” | | 02:50 | 2026 Tax Rebates | “In fact, we estimate... an increase of about $1,000 [per household].” | | 04:25 | FCC Drone Ban | “The FCC says a national security review found unacceptable risks...” | | 05:47 | Disney/OpenAI Collaboration | “Disney is making this $1 billion equity investment in OpenAI... licensing hundreds of characters ...” | | 06:38 | Youth Audience Pivot | “There is a large and growing audience for these kind of short form clips...” | | 07:19 | AI Union Protections | “Studios can’t make digital replicas of a performer’s voice or likeness...without consent.” | | 08:04 | Union Concerns | “Will this mean less original material produced by their own writers, animators and actors?” |

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Conclusion

This compact episode covers pivotal economic and business news:

• Strong but dated U.S. GDP growth, with positive signs for consumer spending.
• A major regulatory move banning new foreign-made drones, mainly affecting dominant Chinese producer DJI.
• An industry-defining partnership between Disney and OpenAI’s Sora, raising questions about the future of entertainment content and the role of AI-generated, fan-driven video—and what this pivot means for the livelihoods of creative professionals.

For those tracking business, media, and tech intersections, these stories point toward ongoing shifts and open important debates about data, jobs, and creativity.

Transcript

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[Sabri Benishour]

GDP growth jumped in the third quarter from Marketplace, I'm Sabri Benishour in for David Brancaccio. The gross domestic product of the United States States, that is the sum total of the entire economy, grew at an annualized rate of 4.3% in the third quarter. That is faster than it grew in the first and second quarters. And this is not just consumers buying stuff. Larry Adam is Chief Investment Officer at Raymond James, which is a Marketplace underwriter. Welcome Larry.

[Larry Adam]

Thank you very much for having me. Happy holidays.

[Sabri Benishour]

So 4.3% is pretty good. What do you think?

[Larry Adam]

Yeah, well, for gdp, I think that that's a very good, very solid number for the third quarter. And the good thing about it is that it was broad based. You know, you saw good spending by the consumer, exports were up really strong, almost 9%, and even government spending was up 2.2%, driven by defense spending. So overall, pretty broad based strength in that number. But I would caveat it because if you just think about this, this number is fairly old and it goes back to the economic data that we were generating at the beginning of July. So it is pretty dated as we sit here right now.

[Sabri Benishour]

Yeah, July through September and here we are in December. Any idea as to what GDP is looking like right now as we speak?

[Larry Adam]

Yeah, I think right now as we sit here in the fourth quarter, I do think you're going to see some temporary softness in the economy. The reason for that is that we did have the government shutdown this particular quarter. I think tariffs are taking a little bit of a bite out of the ability for consumers to spend. But I wouldn't write off the fourth quarter because just came out this morning that MasterCard spending survey came out and spending so far through the holiday shopping season is up about 3.9%. So that's still a pretty solid number for the consumer spending this shopping season.

[Sabri Benishour]

Next year we are getting some of the incentives for spending and investment out of the big tax and spending bill that was passed earlier this year. What's that going to do for GDP growth?

[Larry Adam]

Yeah, I think it's going to boost GDP growth next year, particularly during the first half of the year, because when people actually file for their taxes, I think you're going to see some significant rebates coming back. In fact, we estimate that the average you're going to see is about an increase of about $1,000. So I think this will be a pretty big boost for the consumer next year.

[Sabri Benishour]

Larry Adam is Chief Investment Officer at Raymond James. Thank you so much.

[Larry Adam]

Thank you.

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[Sabri Benishour]

Downy rinse fights stubborn odors in just one wash when impossible odors get stuck in the US Is Banning Foreign made drones and by foreign made in this case we really mean Chinese made. Chinese firm dji, for example, sells more than half the commercial drones used in the US and supplies 80% of state and local law enforcement and disaster relief drone programs. The Federal Communications Commission says its move is about national security marketplaces. NovaSafo has more.

[Nova Safo]

Under a law Congress passed a year ago, the FCC had until today to decide what to do about Chinese made drones, which proliferate the US Especially for uses such as agriculture, filmmaking and law enforcement. The FCC says a national security review found unacceptable risks from not just Chinese made drones, but from those produced in all foreign countries. Those risks include surveillance and data collection by foreign actors. The FCC is banning approvals of any new foreign made drone models or critical components. Ones previously approved can continue being sold in the U.S. in a statement, DJI, the dominant Chinese drone company, said the move was not grounded in evidence and amounted to protectionism. The Commerce Department is also considering restricting foreign drone imports. I'm Nova Safo for Marketplace.

[Sabri Benishour]

A little more than a week ago, Disney joined forces with OpenAI and became the first major media company to do so. They signed a deal to license Disney content to Sora. That's OpenAI's short form video platform. This means that people on SORA can start making videos with Disney characters For more, Virginia Dulgast joins us. She's a professor at Cornell University School of Industrial and Labor.

[Marketplace Sponsor Announcer]

Welcome.

[Virginia Dulgast]

It's great to be here. Thanks for inviting me.

[Sabri Benishour]

So what kinds of things are we going to see as a result of this deal?

[Virginia Dulgast]

Well, I mean, first of all, Disney is making this $1 billion equity investment in OpenAI. So that's clearly a benefit to OpenAI, which has had some financial struggles lately. Also then they're licensing hundreds of Disney owned characters to sora, which is OpenAI's short form generative AI video platform. So Disney is owning the rights to user generated videos created over Sora and is able to stream then some of these videos on Disney. But also as part of the deal, Disney's going to be a customer of OpenAI. Right. So they're purchasing ChatGPT Enterprise for the employees.

[Sabri Benishour]

Now, part of this is that Disney can also stream this fan based content on Disney. Do people want to see random fan generated content from other people?

[Virginia Dulgast]

Do they want this? Well, I can say from having a son who watches YouTube constantly that there is a large and growing audience for these kind of short form clips. And it looks like Disney has declining viewership, whereas these platforms like YouTube have increasing numbers of particularly young viewers going there.

[Sabri Benishour]

Yeah. Now, two years ago, when both the Writers Guild of America and SAG AFTRA were on strike, they wanted guardrails about the use of artificial intelligence in the entertainment industry. Can you remind us briefly what those protections are?

[Virginia Dulgast]

Yes. So SAG aftra, they won a series of AI protections in their agreement with the studios which included Disney. One of those is that the studios can't make digital replicas of a performer's voice or likeness unless they give advance notice and get written informed consent. And some of those protections seem to have influenced the agreement between Disney and OpenAI. That agreement explicitly does not include the use of image, likeness or voice of human performers.

[Sabri Benishour]

Now, the unions have not reacted particularly positively to this. The Writers Guild of America called it sanctioned theft of union members work. What do you think of that? And is this agreement going to run afoul of some of the protections that currently exist?

[Virginia Dulgast]

Well, I think that gets into bigger questions. If Disney's posing user generated videos on Disney, will this mean less original material produced by their own writers, animators and actors? Is it sort of substituting for something they would have been doing internally and paying their own employees to produce? Will they need fewer employees as a result of that? Will they need less animators because you have user generated content?

[Sabri Benishour]

Virginia Dulgast, professor at Cornell University's School of Industrial and Labor Relations. Thank you so much.

[Virginia Dulgast]

Thank you.

[Sabri Benishour]

In New York, I'm Sabreth Benishore with the Marketplace Morning Report from APM American Public Media.

[Rima J. Reyes]

Hey everyone. You already listen to Marketplace podcasts, so you know that it's important to understand how economic forces shape our lives. And that feels especially important now as we're all trying to make sense of the latest headlines. I'm Rima J. Reyes, host of Marketplaces. This is Uncomfortable, a show that explores how money bumps up against our relationships, our choices, and the parts of life we don't always say aloud. And starting January 15th, we are back every single week. New stories, new questions, and the kind of conversations that make you feel less alone in this quickly changing economy. We're tackling questions like should I turn my hobby into a money making side hustle? How do I deal with layoff anxiety? Or what do we owe our parents financially? Don't miss an episode. Subscribe to this is Uncomfortable from Marketplace. Wherever you get your podcasts.