Netflix Inc. and Walt Disney Co. have quietly begun evaluating AI‑driven video tools from New York–based startup Runway AI, signaling a cautious embrace of generative technologies that have stirred controversy across Hollywood, Bloomberg reported.
As per the report, Netflix is already integrating Runway’s software into its content‑production workflows to accelerate and economise special‑effects creation. Disney has also reportedly held exploratory talks with the startup but, for now, remains undecided on deploying the tools more broadly.
Netflix’s interest in Runway follows comments by co‑CEO Ted Sarandos during the company’s second‑quarter earnings call, where he confirmed the streaming platform’s use of AI to streamline visual effects.
IP Concerns
Disney’s engagement with Runway comes amid heightened sensitivity around intellectual‑property rights and labour displacement. Last month, Disney sued AI image and video startup Midjourney Inc. for alleged copyright infringement, reflecting studios’ wariness of unlicensed model training.
A Disney spokesperson, however, emphasised that while the company is “monitoring innovations in generative AI,” it has “no immediate plans” to fold Runway’s tools into its official production pipelines.
Runway AI has emerged as one of the few startups with substantive traction in entertainment. The company garnered attention in early 2023 with a three‑second AI‑generated clip generator and has since secured partnerships with Lionsgate to train bespoke models on studio content.
Its recent launch of Act‑Two, an AI‑powered motion‑capture system, aims to simplify what has long been a costly, hardware‑intensive process, using Runway’s Gen‑4 framework to map real‑world movements onto animated characters.
Investors have funnelled $545 million into Runway to date, including a $308 million round earlier this year valuing the startup at over $3 billion. Despite competition from tech giants such as OpenAI and Google, and OpenAI’s own Sora video generator, which has held preliminary discussions with major studios, Runway remains among the most visible challengers courting Hollywood clients.
As Netflix and Disney tiptoe toward adopting generative‑AI tools, the industry faces a balancing act: harnessing breakthroughs in speed and cost savings while navigating legal, ethical and workforce‑related ramifications. Whether Runway’s technology can win broad acceptance without igniting fresh disputes over creative credit and job security will shape the next chapter of digital filmmaking.
