Disney is making a bold move into short-form vertical video, transforming Disney+ from a passive streaming service into an interactive daily destination designed to compete with TikTok and YouTube Shorts.
The entertainment giant announced plans at the Consumer Electronics Show in Las Vegas to roll out vertical video experiences across its streaming platform within the next year.
This isn’t just about keeping up with trends—it’s about fundamentally reimagining how audiences, especially Gen Alpha, engage with Disney’s massive entertainment empire.
And artificial intelligence will power much of this transformation.
Disney+ Goes Vertical: Short-Form Content Meets Streaming
Disney’s vertical video initiative will aggregate short-form content from across its entertainment portfolio, including sports highlights from ESPN, news clips from ABC News, and entertainment snippets from its vast library of franchises.
Over the next year, we’re introducing vertical video experiences on Disney+, think all of the short form Disney content you want all in one unified app.
Erin Teague, executive VP of product management at Disney, explained during the presentation that mobile represents a critical opportunity for transforming Disney+ into something users check multiple times daily rather than occasionally binging shows.
The vertical video feed will evolve over time, creating personalized content streams that refresh based on user interests and viewing habits. Sports fans might see game highlights and breaking scores, while Marvel enthusiasts could get character deep-dives and behind-the-scenes footage.
Following ESPN’s Playbook
Disney isn’t entering this space blindly. ESPN already tested vertical video with “verts” in its app, creating a new sports highlight experience that resonated with mobile-first viewers.
That success provided the blueprint for expanding across Disney’s broader entertainment ecosystem.
We want to bring the best of what makes our live products great, from ESPN to ABC News to Hulu Plus Live TV, all into this unified environment.
The integration strategy consolidates Disney’s sprawling content library into one seamless mobile experience, eliminating the need for users to jump between multiple apps.
AI-Powered Content Creation for Advertisers
Beyond consumer-facing features, Disney unveiled AI tools designed to revolutionize how advertisers create content for connected TV platforms.
The AI video generation system allows brands to rapidly develop and deploy CTV-ready advertisements, dramatically reducing production time and costs.
Tony Donohoe, a Disney executive, demonstrated how multiple AI models work together in what he called “a single agentic workflow.”
This isn’t just an AI model creating a clip. The magic is the work we’re doing under the hood and bringing Disney’s blend of technical, creative and operational expertise as we build a capability with human oversight and imagination.
Different models handle distinct aspects of production:
- Script generation: One model creates compelling narrative structures
- Storyboarding: Another visualizes scenes and shot composition
- Audio production: Separate systems handle music and sound design
- Video rendering: Final models generate the actual footage
All of this happens while maintaining IP protection, compliance requirements, and brand safety—with human oversight ensuring quality control.
Targeting Gen Alpha’s Interactive Expectations
Disney’s strategic shift stems from recognizing fundamental changes in how younger audiences consume entertainment.
Teague emphasized that Gen Alpha—the first generation growing up with AI as a normal part of life—approaches content completely differently than previous generations.
They are the first AI native generation, and the interesting thing is, they don’t see stories as things that happen to them. Instead, they expect more agency.
Modern viewers don’t passively watch shows anymore. They pause mid-episode to research character backstories, debate fan theories with family members, and share favorite clips across social platforms.
This behavior requires entertainment platforms to accommodate simultaneous activities—streaming, researching, discussing, and sharing—all within integrated experiences.
The OpenAI Partnership: User-Generated Disney Content
Disney’s AI ambitions extend beyond vertical video and advertising tools. The company recently partnered with OpenAI to bring Disney characters and worlds to Sora, OpenAI’s video generation platform.
Eventually, user-prompted content created through these AI tools may appear on Disney+ itself, allowing fans to generate custom stories featuring beloved characters.
To us, AI is an accelerator. It’s an amplifier. It’s why collaborations with partners like OpenAI are absolutely crucial.
Teague stressed that empowering interactive fandom while protecting human creativity and user safety remains paramount as Disney explores these technologies.
Competing in the Short-Form Video Wars
Disney’s vertical video push places it in direct competition with established short-form platforms like TikTok, Instagram Reels, and YouTube Shorts.
However, Disney possesses unique advantages: unmatched IP across Marvel, Star Wars, Pixar, and classic animation franchises, plus premium sports and news content from ESPN and ABC.
The question becomes whether viewers will adopt Disney+ as a daily scrolling destination or continue compartmentalizing streaming services for long-form viewing while using social platforms for quick entertainment hits.
Disney’s bet is that integrating everything—from 30-second clips to full movies, live sports to breaking news—within one app will create stickiness that standalone short-form platforms can’t match.
What This Means for Streaming’s Future
Disney’s announcements signal broader industry trends reshaping streaming services.
Mobile-first design is becoming essential rather than optional. Platforms optimized for television viewing will struggle as younger audiences primarily consume content on smartphones.
AI integration is accelerating across both content creation and personalization. Advertisers gain efficiency while viewers receive increasingly customized experiences.
Interactivity expectations continue rising. Passive viewing no longer satisfies audiences who want agency over their entertainment experiences.
Disney’s vertical video rollout over the coming year will test whether traditional entertainment giants can successfully adapt to content consumption patterns pioneered by social media platforms—or whether audiences prefer keeping these experiences separate.