Netflix's CEOs say AI has “huge potential” for the company's recommendation system.
The use of AI in entertainment has become a hot topic in recent years, and now Netflix CEOs Greg Peters and Ted Sarandos have weighed in on where the streaming company might use generative AI technology. During a recent quarterly Q&A, Peters and Sarandos spoke about the use of generative AI, noting that Netflix uses AI to make recommendations on its platform, but also said they can't make “meaningful predictions” until they see how the use of AI evolves.
“We've been using similar technologies – AI and ML – for years to improve our discovery experience and, through those improvements, increase engagement,” Peters said. “We see huge potential for generative AI to further improve our recommendation capabilities in our discovery system. We want to make it even easier for people to find great stories that fit their moment. But I also think it's worth noting that the key to our success is cumulative: quality at every level – great movies, great TV shows, great games, great live events, and a great, constantly improving recommendation system that helps us unlock all the value in all those stories.”
Sarandos also commented more broadly on the impact of AI in entertainment, saying he's “really excited” about AI as a tool, but needs to see how it all develops before predicting its future uses.
“It raises the question of how AI is going to impact creative going forward. Of course, it's hard to predict, but I think AI is going to create a great toolset for creators and a great way for them to tell better stories,” Sarandos said. “And if you look back at 100 years of entertainment history, you see how great technology and great entertainment have gone hand in hand to create a huge business. And the driving force behind that is none other than animation. Animation didn't get cheaper, but it got better with the transition from hand-drawn to CG animation, and today we have more people working on animation than ever before in history. So I'm sure it's 50 percent cheaper. So remember, I think a show or a movie is successful because it connects with the audience. It's in the beauty of the writing, it's in the chemistry of the actors. It's in the plot, the surprises, the plot twists, all of that. I'm not saying that audiences don't notice other things, but I think they mostly care about the connection to the storytelling. And they probably don't care so much about the budget, and maybe they don't care about the technology that makes it happen.”
He continued: “So, what I'm saying is, they want connection. So we need to focus on the quality of storytelling. A lot of filmmakers and producers are experimenting with AI right now. They're really excited about how it can be a useful tool, and we'll have to see how it develops before we can make any meaningful predictions about what it means for anyone. But our goal remains the same, and that's to tell great stories.”
