OpenAI’s (PC:OPAIQ) new video app, Sora 2, became an instant hit after launch. The invite-only iOS app lets users create short 10-second clips from simple text prompts. Within five days, it reached over one million downloads and topped Apple’s App Store charts in the U.S. and Canada. OpenAI said its adoption rate even surpassed the early growth of ChatGPT. Yet soon after launch, the excitement turned into trouble.
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Studios Push Back
Major Hollywood studios accused OpenAI of allowing widespread copyright misuse on the platform. The Motion Picture Association, which represents companies like The Walt Disney Company (DIS), Warner Bros. Discovery (WBD), and Comcast (CMCSA), said users had created unauthorized videos using protected characters. Clips showed, for instance, James Bond in poker scenes or Nintendo’s (NTDOY)Mario in police chases. The group said OpenAI must take responsibility for how its users generate such content.
At first, OpenAI allowed copyright holders to “opt out” if they did not want their material used. However, growing pressure from studios and talent agencies forced a policy change. Chief Executive Officer Sam Altman said the company will now use an “opt in” system that lets rightsholders decide when and how their material appears in Sora. Still, users have already found ways to get around new limits by adjusting their prompts.
Families React to Deepfakes
The app’s ability to recreate real people, including deceased figures, caused more outrage. Zelda Williams, daughter of actor Robin Williams, said she was upset by AI videos showing her father. Kelly Carlin, daughter of comedian George Carlin, said she receives daily links to fake videos of her late father. Families of other public figures voiced similar complaints.
OpenAI said it will remove depictions of recently deceased people when requested by verified representatives. The company also said there are “free speech interests” in allowing historical figures in generated videos. However, it did not define what “recently deceased” means.
Growing Legal and Market Pressure
The backlash from Hollywood has joined a broader debate about who controls creative rights in the age of AI. Unions and agencies, including SAG-AFTRA, have expressed concern that AI video tools could use performers’ likenesses without consent or pay. Legal experts expect long negotiations over compensation and licensing.
Despite the controversy, OpenAI continues to refine Sora 2. The company said it is testing new filters and exploring revenue-sharing options with rights holders. Digital safety experts warn that as the app grows, it could increase the spread of misleading or harmful deepfake content online.
For investors, the dispute highlights how fast AI is colliding with traditional industries. The outcome may shape how entertainment, media, and technology firms handle copyright and likeness rights in the years ahead.
Using TipRanks’ Comparison Tool, we’ve lined up some of the major entertainment companies that will have a say on Sora and other video generator apps’ copyright policy. This is a great way to gain a comprehensive examination of each stock and the entertainment industry as a whole.
