Netflix is using artificial intelligence for the first time in one of its television shows, and the streaming company boss said it would make movies and programs cheaper and better quality.
Netflix co-Chief Executive Ted Sarandos said Argentine science fiction series El Eternauta (The Eternut) was the first to create it using generated AI footage.
“I believe AI represents an incredible opportunity to help creators make films and series better, rather than cheaper,” he told analysts Thursday after Netflix reported its second quarter results.
He said the series, following the rapid and catastrophic toxic snowfall survivors, involved Netflix and Visual Effects (VFX) artists using AI to show the collapse of Buenos Aires.
“With the tools equipped with AI, they were able to achieve amazing results at incredible speeds. In fact, the VFX sequence was completed 10 times faster than traditional VFX tools and workflows,” he said.
He said using AI tools allows Netflix to fund the show at a much lower cost than typical of large productions.
“Cost of [the special effects without AI] It wouldn't have been feasible for that budget show,” Sarandos said.
The use of generator AI in the entertainment industry has sparked the fear of job cuts, particularly in areas such as the production and special effects industry.
In 2023, AI was an important sticking point in a double strike between Hollywood actors and writers. This secured an agreement that ensures that new technologies remain in workers' control rather than being used to replace them.
Sarandos said: “This is real people who do real work using better tools. Our creators have already seen the benefits of production through pre-visualization and shot planning work, and certainly visual effects. I think these tools will help creators expand their on-screen storytelling possibilities.
His comments came after Netflix reported $11 billion in revenue for the quarter ending June, up 16% year-on-year.
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The company said that better performance than expected was boosted by the success of the third and final series of Korean thriller squid games.
Netflix expects that its small but rapidly growing advertising business will “nearly double” this year.
“The quarter that surpasses Netflix's expectations is a result of great content, increased pricing and ad momentum hits all at once,” said Mike Proulx, vice president of research at market research firm Forrester. “There's still more work to do to enhance advertising capabilities, but the most difficult part is Netflix's rearview mirror with a full rollout of its own AD Tech platform.”
