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In a bid for greater user engagement, Walt Disney Co. will introduce vertical videos to its Disney+ app over the next year, a company executive said Wednesday.

The move is part of the Burbank media and entertainment company’s effort to encourage more frequent app usage, particularly on smartphones.

“We know that mobile is an incredible opportunity to turn Disney+ into a true daily destination for fans,” Erin Teague, executive vice president of product management, said during an onstage presentation in Las Vegas at the Consumer Electronics Show. “All of the short-form Disney content you want, all in one unified app.”

Teague said the company will evolve that capability over time to determine new formats, categories and content types.

Disney’s presentation also touched on its interest in artificial intelligence. Last month, San Francisco startup OpenAI said it had reached a licensing deal with Disney to use more than 200 of the company’s popular characters in its text-to-video tool, Sora. Under the terms of that deal, users will be able to write prompts that generate short videos featuring Disney characters and use ChatGPT images to create those characters’ visages. Some of those Sora-generated videos will be shown on Disney+, though the companies said the deal did not include talent likenesses or voices.

Disney also said it would invest $1 billion into the AI company.

Part of Disney’s move toward AI is to appeal to young Gen Alpha viewers, who are more comfortable with AI and “expect to interact with entertainment” instead of simply watching stories on the screen, Teague said.

“AI is an accelerator,” she said. “It’s why collaborations with partners like OpenAI are absolutely crucial. We want to empower a new generation of fandom that is more interactive and immersive, while also respecting human creativity and protecting user safety.”

Only a few years ago, Keith Lee was a professional MMA fighter, doing food delivery and making social media videos to ease his social anxiety.

On Thursday night, however, Lee found himself under the glare of bright lights and walking the red carpet outside the historic Hollywood Palladium on Sunset Boulevard about to be recognized as TikTok’s “Creator of the Year.”

He and hundreds of other creators had gathered for TikTok’s first American awards show. And they had good reason to celebrate.

Only a few minutes before the start of the inaugural show, they got word about a deal that would allow TikTok to keep operating in the U.S. through a joint venture controlled by a group of U.S. investors that includes tech giant Oracle Corp. TikTok confirmed the deal in an email to employees and said it is expected to close next month.

“[TikTok] is the best way to reach people and I know so many people who rely on it to support their families,” said Lee, who has 17.3 million followers of his casual restaurant reviews. “For me, it’s my career now so I can’t imagine it not being around.”

Creators — many of whom are based in Southern California — rely on the app as a key source of income, while businesses and brands turn to the platform and its influencers to promote their products.

Many had worried that the app might disappear after the Supreme Court upheld a ban on the platform because of national security concerns raised by President Trump in 2020.

Trump subsequently allowed TikTok, which has offices in Culver City, to keep operating in the U.S. and in September signed an executive order outlining the new joint venture.

Comedy creator Adam W., who attended the awards show, called the news “game changing.”

With 22.6 million followers on TikTok, Adam W. has amassed a massive audience for his videos that parody pop culture trends.

In one, he’s a contestant on “The Bachelor,” surrounded by a line of lookalike blond models; in another, he’s drinking matcha lattes with Will Smith.

“That’s so good to hear,” said Adam W. of the new ownership. “So many people are able to make careers off of TikTok. There’s so many people out there who go to TikTok to get away from their reality and it means a lot to them, so I think it’s really valuable for us to have.”

TikTok said the awards show is intended to celebrate the influencers who’ve helped transform the app into a global force that has shaped the way younger Americans shop and consume entertainment.

“You represent a truly global community of over 1 billion people on TikTok,” Kim Farrell, the app’s global head of creators, said at the event. “This year, you showed the world just how much impact creators have.”

Despite the historic moment, the awards show was not without technical glitches. Screens that were intended to display clips of contestants and visuals during speeches were dark the entire night.

The two-hour show, in which creators received awards in several categories, featured a range of skits parodying TikTok cultural moments, from Jools Lebron telling the crowd to “be demure,” to Rei Ami of K-Pop Demon Hunters shooting a Labubu cannon into the crowd.

“TikTok definitely changed my life,” Lee said in an interview. “I always planned my life around food, so I’m blessed to just turn the camera on and do the same thing.”

The new ownership of TikTok should allow the app to rebound after it lost market share amid uncertainty over its future, said Max Willens, an analyst at EMarketer.

“This past year, because a lot of advertisers weren’t really sure whether TikTok was going to stay or go, it did kind of slow the momentum that we had seen on that platform,” Willens said. “We think that moving forward that is going to wind up just being a blip.”

TikTok has finalized a deal with Oracle and two other investors that will allow the popular social video platform to continue its business in U.S.

The deal, expected to close on Jan. 22, will be 50% held by a new investor consortium that includes tech giant Oracle, Silver Lake and MGX, a technology fund in the United Arab Emirates (with each holding 15%). The rest of the group is made up of ByteDance owning 19.19% and affiliates of existing ByteDance investors holding 30.1%, TikTok said in a memo to employees.

“With these agreements in place, our focus must stay where it’s always been — firmly on delivering for our users, creators, businesses and the global TikTok community,” TikTok CEO Shou Zi Chew wrote in his memo.

The company’s future for many years in the U.S. had been uncertain, amid security concerns among legislators about ByteDance’s ties to China. TikTok’s parent company, ByteDance had been under pressure to divest its ownership in the app’s U.S. operations or face a nationwide ban, due to a law Congress passed that went into effect in January. President Trump has signed orders that have allowed TikTok to keep operating in the country and in September signed an executive order outlining the new joint venture.

The venture, which would oversee U.S. data protection, algorithm security, content moderation and software assurance, would be governed by a seven-member board that is majority American, Chew said in his memo. Oracle will be the security partner responsible for “auditing and validating compliance with the agreed upon National Security Terms,” Chew wrote.

Oracle Chief Executive Larry Ellison is also a party in effort to buy Warner Bros. Discovery.

Oracle did not return a request for comment. Silver Lake declined to comment. The White House on Thursday referred questions about the deal back to TikTok. In September, Trump said that Chinese President Xi Jinping had approved the deal.

“These safeguards would protect the American people from the misuse of their data and the influence of a foreign adversary, while also allowing the millions of American viewers, creators, and businesses that rely on the TikTok application to continue using it,” Trump stated in his executive order.

The announcement will come as a relief to some creators and businesses who rely on TikTok to entertain and reach fans and customers.

“I hope it just stays true to the platform and the independence we get from it,” said Yasmine Sahide, who posts comedy videos on TikTok and has 2.4 million followers. “I hope we’re still able to monetize our videos the same way because without that, I think a lot of people would leave or feel uninspired.”

Keith Lee, a TikTok creator who posts videos about food, said he expects the algorithm to change.”I just hope that we can still stay connected with our community and reach an audience the same way as before,” said Lee, who has 17.3 million followers.

Many TikTok creators are based in Southern California, close to TikTok’s office in Culver City. Over the years when TikTok’s future appeared uncertain, some of those creators diversified, posting their content to other platforms like YouTube and Instagram.

“It’s a smart way to avoid ownership and data issues,” said Ray Wang, principal analyst at Constellation Research, of the deal.

If finalized, the deal would remove a persistent issue in Beijing-Washington relations and signal progress in broader talks. But it would also deprive China’s most valuable private company of total control of an American social media phenomenon.

ByteDance’s coveted algorithms are considered central to TikTok’s business. Under the the deal proposed by Washington, ByteDance will license its AI recommendation technology to a newly created U.S. TikTok entity, which will use the existing algorithm to retrain a new system that is secured by Oracle, according to Bloomberg. The algorithm will be retrained on U.S. user data by the U.S. joint venture, according to TikTok.

Some industry observers questioned whether the deal addresses the larger concerns surrounding TikTok in the law Congress passed.

“While these executive orders positively have allowed the platform to operate and maintain the venue for speech, they do not resolve the underlying concerns about the law, which could be applied to other platforms in the future and raise questions about executive power,” said Cato Institute senior fellow in tech policy Jennifer Huddleston in a statement.

“Just because TikTok remains available under such orders does not mean that the policy concerns about the underlying law have been resolved.”

Bloomberg contributed to this report.