Netflix Navigates New Frontiers with Generative AI
Netflix has begun integrating generative AI (GenAI) into its in-house productions, marking a significant shift in its creative processes. According to a report by TechCrunch, the streaming giant employed GenAI for the first time in the final scene of the Argentine series El Eternauta, where it was used to create a dramatic building destruction sequence. The result was achieved ten times faster and at a lower cost compared to traditional VFX tools.
During a post-earnings conference call on Thursday, Netflix Co-CEO Ted Sarandos stated, “AI is not just about reducing costs, but also about providing better creative assistance to filmmakers.” He noted that AI is currently being used for pre-visualization, shot planning, and visual effects.
Co-CEO Greg Peters added that AI is also being utilized across personalization, search, and advertising. He revealed that the company plans to launch AI-driven interactive ads in the second half of the year.
In the second quarter of 2025, Netflix generated $11.08 billion in revenue — a 16% increase from the same period last year. Over the first six months, viewers watched more than 95 billion hours of content, one-third of which was in non-English languages.
