🎬 The DAX Digest: Entertainment & Media Update...
Week of June 9–15, 2025
Disney & Universal Sue Midjourney in Landmark AI Copyright Case
“Piracy is piracy,” say studios in historic legal offensive
So nobody saw this coming, right? In an interesting turn of events, Studios that have for some time been perceived to be targeting AI tools for major cost savings in VFX (with a particular lack of control or artist credit) on generative tools, are suddenly taking the issue of AI based Copyright Infringement very seriously..
On June 11, 2025, Disney and Universal filed a landmark 110-page lawsuit in U.S. federal court against AI image generator Midjourney, accusing the company of copyright infringement.
The suit claims that Midjourney trained its AI on unauthorized depictions of iconic characters—including Darth Vader, Elsa, Spider-Man, Minions, and Homer Simpson—without proper licensing, calling it a “bottomless pit of plagiarism.”
The plaintiffs are seeking:
- Up to $150,000 per infringement
- A permanent injunction against the unlicensed use of copyrighted IP
- New legislative guidelines around generative AI and content ownership
Significance:
This is Hollywood’s first major legal strike against a generative AI firm and could set precedents for how AI models are trained, potentially impacting AI practices across tech, games, and media. The outcome of this and potentially other cases could also have a significant impact on the future protection of Creative Artists work from the reaches of generative AI.
We will follow this case with interest and report back...
🏢 Warner Bros. Discovery to Split Into Two Public Companies
Bondholders approve 2026 strategic restructure
On June 16, 2025, bondholders overwhelmingly approved a restructuring plan that will split Warner Bros. Discovery (WBD) into two publicly traded companies by mid-2026.
The Warner Bros. split—whether referring to a corporate restructuring, a spinoff (such as the earlier WarnerMedia–Discovery merger), or a more recent internal reorganization—has important implications for content creation in the media and entertainment industry.
Here’s a breakdown of what a Warner split generally means for content creators, studios, and the broader creative landscape:
Company A: Streaming & Studios
Includes HBO, Warner Bros. films & TV, and DC Studios
Goal: Streamlined focus on global streaming, content production, and possible M&A play
Company B: Global Networks
Includes Discovery Channel, CNN, and legacy cable
Goal: Optimise cash flow from linear TV and pivot toward digital transformation.
🎬 Shift in Content Strategy?
A corporate split often forces the company to refocus on profitability and core content areas, which can lead to:
- Fewer but bigger-budget productions (fewer mid-budget risks)
- Greater investment in franchise IP (e.g., DC Universe, Harry Potter, Looney Tunes)
- Less experimentation with original or niche content
🡆 Outcome: Creative projects may be more tightly controlled, and creators may need to align with franchise strategies or proven formats.
Once again we are seeing a legacy Studio giant which in times gone by stood tall over Hollywood and the creative media landscape restructuring and recalibrating strategy in order to adapt to the new digital content age of multiple streamers and platforms.
Will James Gunn's reinvigoration of the DC Universe help steer the way for WB? Only time will tell...