Could Netflix Let Fans Create AI Harry Potter Films?

Disney just announced plans to let subscribers generate their own content using Mickey Mouse and Star Wars. Netflix just bought Warner Bros. for $82.7 billion, acquiring Batman, Harry Potter, and Game of Thrones. The question isn't if Netflix could follow Disney's playbook. It's whether they could go even further.

This is speculative analysis, not confirmed plans. But the convergence of these two developments separated by just three weeks reveals a potential path for how major studios might monetize legacy IP through AI generated content. And Netflix's complete ownership of Warner Bros. gives them something Disney doesn't have: total control.

What Disney Actually Announced

On November 13, 2025, Disney CEO Bob Iger outlined plans for Disney+ that would fundamentally change how subscribers interact with content. During the company's Q4 earnings call, Iger described tools that would allow users to create and share AI generated short form videos using Disney's intellectual property.

"AI is going to give us the ability to provide users of Disney+ with a much more engaged experience, including the ability for them to create user generated content," Iger stated. The company is in discussions with unnamed AI companies to develop these capabilities while protecting Disney's IP.

The announcement represents a significant shift for Disney, which has historically been protective of its characters and stories. Iger acknowledged this tension, emphasizing that "it's obviously imperative for us to protect our IP with this new technology."

Disney's plan focuses on short form content—think TikTok length videos, not feature films. Users would work within a controlled environment on Disney+, creating and sharing content built from franchises like Frozen, Marvel, and Star Wars. The company has not announced specific AI partners, timeline, or technical specifications.

What Netflix Just Acquired

Twenty two days after Disney's announcement, Netflix made the largest acquisition in streaming history. On December 5, 2025, the company agreed to purchase Warner Bros.' studios and streaming assets from Warner Bros. Discovery for $82.7 billion.

The acquisition gives Netflix ownership of:

• Warner Bros. film and television studios with over a century of content
• HBO and HBO Max streaming platform
• DC Comics universe (Batman, Superman, Wonder Woman)
• Harry Potter franchise
• Game of Thrones and HBO's complete library
• The Matrix, Lord of the Rings film rights, Looney Tunes
• Warner Bros. gaming division

The deal is expected to close in Q3 2026, following Warner Bros. Discovery's separation of its cable networks (CNN, TNT, TBS) into a standalone company called Discovery Global. Unlike Disney's licensing arrangements with various creators, Netflix will own these properties outright.

The Control Difference: Ownership vs. Licensing

This is where the hypothesis becomes interesting. Disney's AI content plans face complex legal constraints because Disney doesn't own everything outright. J.K. Rowling maintains significant creative control over Harry Potter. George Lucas negotiated specific terms when selling Lucasfilm. Marvel characters involve intricate rights agreements with original creators and estates.

Netflix's acquisition of Warner Bros. changes this dynamic. When the deal closes, Netflix will own the production rights, distribution rights, and intellectual property rights for Warner Bros. franchises. This complete ownership could theoretically allow Netflix to implement AI content creation tools with fewer legal complications than Disney faces.

Consider the difference:

Disney's position: Must negotiate AI usage rights with various stakeholders, respect existing creator agreements, and navigate complex licensing arrangements for properties like SpiderMan (shared with Sony).

Netflix's potential position: Direct ownership of Warner Bros. properties means fewer external approvals needed to authorize AI assisted content creation within controlled parameters.

This doesn't mean Netflix could or would do anything they want with these franchises. Actor likeness rights, voice rights, and union agreements still apply. SAG-AFTRA's 2023 contract included specific protections around AI use of performer likenesses. The Writers Guild and Directors Guild have similar provisions.

But from a pure intellectual property standpoint, Netflix would have more latitude than Disney to define how their owned franchises could be used in AI generated content.

How This Could Hypothetically Work

If Netflix followed Disney's model but leveraged their ownership advantage, here's what a controlled AI content platform might look like:

Sandboxed creation environment: Netflix could develop tools within their streaming platform that allow subscribers to generate short videos using pre approved Warner Bros. assets. Think of it as a highly restricted video game modding system rather than open AI generation.

Template based generation: Instead of pure text-to-video generation, users might work with structured templates. Select a DC hero, choose a setting from approved options, pick a narrative arc, and the AI assembles a 30/90 second scene using AI video generation technology.

Complete moderation control: Because Netflix owns the platform, the IP, and the distribution channel, they could implement strict content moderation. Every generated video could require approval before sharing, preventing misuse while maintaining brand standards.

Monetization opportunities: Netflix could tier this feature—basic subscribers get limited creation tools, premium tiers unlock more franchises and capabilities. They could even license the best user generated content for official use.

No external distribution: Unlike user generated content on YouTube or TikTok, everything stays within Netflix's ecosystem. They control who sees what, how it's shared, and can remove content instantly if needed.

This model would serve multiple business objectives: increased subscriber engagement, differentiation from competitors, new revenue streams, and a testing ground for AI production tools that could eventually enhance their professional content creation.

Technical Realities and Limitations

For Netflix to implement user generated AI content, they would need to partner with or develop technology specifically designed for controlled, template based creation rather than open ended generation. This is technically more achievable than producing full films but still represents a significant development effort.

Legal and Creative Constraints

Even with complete ownership of Warner Bros. IP, Netflix would face substantial legal considerations:

Union agreements: The 2023 SAG-AFTRA contract established that AI generated synthetic performers require consent and compensation. Any AI recreation of actor likenesses from existing Warner Bros. content would need to navigate these protections.

Writer and director rights: The Writers Guild of America contract requires that AI cannot write or rewrite literary material. While user generated short content might fall outside these provisions, Netflix would need clear legal boundaries.

Existing contracts: Many Warner Bros. properties involve profit participation agreements with creators, actors, and producers. Using these franchises for AI content generation could trigger compensation clauses or require renegotiation.

International laws: AI generated content faces different legal standards globally. The EU AI Act classifies certain AI systems as high risk and requires transparency. China regulates synthetic media heavily. Any global rollout would need to comply with varying regulations.

Brand protection: Warner Bros. has spent decades building franchise value. Allowing user generated content, even in a controlled environment, risks brand dilution if moderation fails or inappropriate content emerges.

These constraints suggest that if Netflix pursued this strategy, implementation would be gradual, heavily moderated, and likely limited to specific franchises where legal complexities are minimal.

Industry Reaction and Creative Community Concerns

Disney's November announcement generated immediate backlash from creative professionals. The announcement sparked widespread criticism on social media, with animators, writers, and directors expressing concern about AI replacing human creativity.

Dana Terrace, creator of "The Owl House," criticized the move as inconsistent with Walt Disney's legacy of human imagination. Theater owners called Netflix's Warner Bros. acquisition an "unprecedented threat" to the film industry. The Directors Guild of America scheduled meetings with Netflix to discuss the implications.

An anonymous group identifying as "concerned feature film producers" sent a letter to Congress urging antitrust scrutiny of the Netflix/Warner Bros. deal, citing fears about AI's impact on employment and creative opportunities.

These reactions reveal the tension studios face: younger audiences (particularly Gen Z) increasingly expect interactive, participatory experiences with media, while creative professionals view AI as an existential threat to their livelihoods. According to Deloitte's 2025 Digital Media Trends survey, over half of Gen Z respondents find social media content more relevant than traditional TV and movies.

Netflix promised to maintain "theatrical releases for films" as part of the Warner Bros. acquisition, attempting to reassure the creative community. But any move toward AI generated content would likely face similar opposition to Disney's announcement.

What This Would Mean for AI Filmmakers

If Netflix implemented Disney style AI content tools with Warner Bros. properties, the implications for independent AI filmmakers would be complex:

Democratized access to major IP: For the first time, creators could legally work with Batman, Harry Potter, or Game of Thrones characters using official tools. This could serve as a training ground for AI filmmaking skills.

Potential creative limitations: Sandboxed, template based systems would restrict creative freedom compared to open AI video tools. You'd work within Netflix's parameters rather than true independent creation.

Skill development opportunities: Learning to create compelling content within constraints is valuable. Many filmmakers could use these tools to build portfolios demonstrating their ability to work with established IP.

Market impact: If major studios embrace AI generated content, it could validate AI filmmaking as a legitimate creative medium, potentially opening more opportunities. Or it could flood the market with low effort content, making it harder for quality independent work to stand out.

Technology acceleration: Netflix funding AI video development could advance the underlying technology faster than current startups, benefiting all creators using AI video generation tools.

The scenario also raises questions about the future of fandom and creativity. Fan fiction, fan art, and cosplay have existed for decades as expressions of audience engagement. Studios largely tolerated these activities as free marketing, occasionally issuing cease and desist notices for commercial use.

AI generated content exists in a grey zone. Is a 60 second AI video of Batman fighting Superman fan fiction or copyright infringement? If the studio provides the tools and platform, does user generated content become sanctioned derivative works? These questions don't have clear answers yet.

The Hypothesis in Context

To be clear: Netflix has made no announcements about AI content creation tools. This analysis is purely speculative, based on:

1. Disney's confirmed plans for AI user generated content on Disney+
2. Netflix's pending acquisition of Warner Bros. and complete ownership of those properties
3. The technical capabilities of current AI video generation systems
4. Legal frameworks around AI, intellectual property, and entertainment unions

The hypothesis is that Netflix could implement such a system because they will own the IP outright, giving them more control than Disney has with its licensed and creator partnered properties. Whether they should or will do this is a separate question involving business strategy, creative community relations, and regulatory considerations.

Several factors make this scenario plausible:

• Streaming platforms are seeking new engagement and retention strategies
• Gen Z audiences expect more interactive, participatory media experiences
• AI video technology is advancing rapidly, particularly for short form content
• Netflix has consistently been an early adopter of new technologies in entertainment
• The Disney precedent shows major studios are seriously exploring this direction

Factors that make it uncertain:

• Significant creative industry opposition to AI replacing human work
• Technical limitations preventing feature length or high quality generation
• Regulatory scrutiny, particularly around the $82.7 billion acquisition
• Risk of brand dilution if moderation fails
• Unclear business case for the development investment required

Moving Forward

The convergence of Disney's AI content announcement and Netflix's Warner Bros. acquisition creates a moment worth analyzing. Whether or not Netflix pursues user-generated AI content, the underlying trends are clear:

Major studios are exploring how AI can increase engagement with legacy IP. Technology companies are rapidly improving AI video generation capabilities. Younger audiences expect to participate in stories, not just consume them. And the legal frameworks around AI generated content are still being established.

For AI filmmakers and those tracking this industry, the coming months will be revealing. If Netflix announces anything similar to Disney's plans, it will confirm that major studios see AI generated content as a viable engagement strategy. If they don't, it may signal that the creative community backlash and technical limitations are more significant than the business opportunity.

Either way, the question isn't whether AI will transform how audiences interact with entertainment franchises. The question is how much control studios will maintain over that transformation, and whether they can balance fan engagement with creative community concerns and brand protection.

The tools for creating professional AI generated video content already exist. You can explore AI video generation and AI image generation capabilities today through AI FILMS Studio. The technology for short form content creation is here. What remains uncertain is how and when major studios will integrate these capabilities into their platforms—and what that will mean for independent creators working in the same space.

Sources:

• NPR. "Disney explores user-generated content to increase engagement." November 14, 2025. https://www.npr.org/2025/11/13/nx-s1-5608271/disney-ai-user-generated-content

• The Hollywood Reporter. "Disney+ to Allow User-Generated Content Via AI." November 13, 2025. https://www.hollywoodreporter.com/business/digital/disney-plus-gen-ai-user-generated-content-1236426135/

• Variety. "Disney+ Has 'Huge Opportunity' in Games and Will Tap Into AI-Based User Generated Content." November 13, 2025. https://variety.com/2025/digital/news/disney-plus-games-ai-ugc-bob-iger-1236581092/

• TechCrunch. "Netflix to acquire Warner Bros. in a disruptive deal valued at $82.7B." December 5, 2025. https://techcrunch.com/2025/12/05/netflix-to-acquire-warner-bros-in-a-disruptive-deal-valued-at-82-7b/

• The Hollywood Reporter. "It's Official: Netflix to Acquire Warner Bros. in Deal Valued at $82.7 Billion." December 5, 2025. https://www.hollywoodreporter.com/business/business-news/netflix-warner-bros-deal-hollywood-1236443081/

• NBC News. "Netflix agrees to buy Warner Bros. and HBO Max, creating streaming titan." December 5, 2025. https://www.nbcnews.com/business/media/netflix-to-buy-warner-bros-rcna247510

• Variety. "Netflix to Buy Warner Bros. and HBO Max in $82.7 Billion Deal." December 5, 2025. https://variety.com/2025/tv/news/netflix-to-acquire-warner-bros-82-7-billion-deal-1236601034/