Disney has signed a content-sharing agreement with TikTok that will allow selected creators to use scenes, characters and other assets from franchises including Marvel, Pixar, Star Wars and FX.

Under the deal, participating TikTok videos will also appear in Verts, Disney+’s vertical short-form video feed. The program will launch in the US in the coming months before expanding to other markets.

Financial terms were not disclosed.

Disney and TikTok will also establish a Creator Ambassador Program offering selected creators additional visibility, access to events, rewards and career development opportunities.

TikTok said users published an average of 6.5 million film and television-related posts each day last year. It also claimed almost half of surveyed viewers had watched a film or television program after discovering related content on TikTok.

The partnership follows the collapse of Disney’s proposed US$1 billion agreement with OpenAI, which would have enabled users to create AI-generated videos featuring Disney characters through Sora.

The TikTok announcement coincided with Disney reporting a seven per cent lift in fiscal third-quarter revenue to US$25.25 billion.

Entertainment revenue increased six per cent to US$11.35 billion, while operating income from the segment jumped 64 per cent to US$1.68 billion.

Disney’s subscription streaming businesses, including Disney+ and Hulu, generated US$5.53 billion in revenue, up 11 per cent. Streaming operating income more than doubled from US$329 million to US$712 million.

The Experiences business, covering theme parks and cruise operations, recorded revenue of US$9.97 billion, up 10%, while operating income rose 20% to US$3.02 billion.

Disney Hikes Streaming Prices For Fourth Year Running – channelnews

However, Disney+ is facing technical and customer-service challenges in parts of Europe after patent injunctions forced it to remove 4K UHD, HDR, Dolby Vision and 3D streaming from some markets.

Disney has begun restoring 4K using an alternative video technology, reportedly the VP9 codec, on selected Android TV, Google TV, Amazon Fire TV and LG devices.

Apple TV 4K, Samsung televisions and gaming consoles remain unsupported, while HDR has not yet returned.

The restrictions affect 11 European countries, including France, Germany and Italy. The UK and Australia are not listed among the impacted markets.