Disney and TikTok made a deal to share clips

A whole new world of Disneybounding deep dives has just opened up. Disney said yesterday during its earnings call that it has made a deal with TikTok that gives some of the platform’s creators access to its coveted IP, including photos and videos from its flagship properties, as well as those of Lucasfilm, Marvel, Pixar, and FX.

The House of Mouse also said it would feature “thoughtfully curated” user-generated content on its own short-form feed, Verts. Disney introduced the creatively named Verts last spring on Disney+, but so far, it’s been populated by clips from its own TV shows and movies. This marks the first time TikToks will appear off the platform.

Welcome to the clip show. Aside from getting Disney content in front of TikTok’s billions of users, the partnership is aimed at increasing watch time, with Disney hoping you’ll endlessly scroll on its own app when you don’t know what to watch. Netflix, Paramount+, HBO Max, and Peacock have also entered the short-form vertical content market.

Elsewhere in the company…

This was Josh D’Amaro’s second earnings call as CEO, and things seem to be mostly working out for the new boss:

• Disney beat Wall Street’s expectations for operating income and earnings per share, but just missed revenue estimates. The company’s experiences arm, which includes theme parks and cruises, had a stellar quarter, reporting $10 billion in revenue—which is up 10% compared to the same period last year.
• Disney also said it has already sold out of ad spots for next February’s Super Bowl. It was asking $10 million per 30 seconds, according to the Hollywood Reporter.
• Its theatrical releases are doing well…even when they’re not. Toy Story 5 was a hit. The live-action Moana and Mandalorian and Grogu were flops, but D’Amaro told analysts they still drove people to spend money elsewhere, like on merch and theme parks.

In Tomorrowland…the company said it is also looking into launching a free ad-supported streaming channel, like the successful Roku and Tubi. And even after recent layoffs, it said it’s still seeking to cut costs.—MM