Netflix is embracing generative AI while the entertainment industry remains divided over its use. In its latest quarterly earnings report, Netflix said it is “very well positioned to effectively leverage ongoing advances in AI.”
Rather than depending on AI to create content, Netflix sees it as a tool to assist creatives.
“It takes a great artist to make something great… AI can give creatives better tools to enhance their overall TV/movie experience for our members, but it doesn’t automatically make you a great storyteller if you’re not,” CEO Ted Sarandos said.
Netflix first applied generative AI in post-production on the Argentine series El Eternauta, creating a building collapse scene. More recently, AI helped rejuvenate characters in “Happy Gilmore 2” and assisted with costume and set design in “Billionaires’ Bunker.”
Sarandos is confident AI will help creatives tell stories faster and better but cautioned against adopting it solely for novelty. Meanwhile, many artists fear AI trained on their work without consent could threaten jobs.
The controversy escalated after OpenAI released Sora 2, a video and audio generation tool without strict safeguards, prompting SAG-AFTRA and Bryan Cranston to call for stronger protections.
Sarandos acknowledged potential impacts but remains positive, saying, “We’re not worried about AI replacing creativity.” Netflix’s quarterly revenue rose 17% year-on-year to $11.5 billion, though below forecasts.
Experts believe AI will augment rather than replace creative roles in the near term.