Netflix Uses GenAI in a Show, an Industry First

Netflix has taken a major step by integrating artificial intelligence into one of its shows for the first time. According to Ted Sarandos, the company’s co-CEO, this move is expected to help reduce production expenses while also improving the quality of content. 

The sci-fi series El Eternauta, created in Argentina, marks the company’s first project using generative AI for visual effects. The show tells the story of a group of people trying to survive after a deadly, fast-moving snowstorm hits. One scene, which shows a building collapsing in Buenos Aires, was brought to life using AI-based tools. 

Speaking after the company’s latest financial results, Sarandos noted that this approach significantly sped up production, finishing the complex effects sequence about ten times faster than if traditional methods had been used. He added that producing such effects without AI would have been too expensive for large-scale production. 

While this advancement shows potential for improving production workflows, it also brings concerns within the entertainment world. Many fear that increasing dependence on AI could lead to job losses, especially in areas like visual effects, animation, and production. 

AI was a major issue during the 2023 Hollywood strikes by writers and actors. The strikes resulted in agreements aimed at keeping creative control in human hands and limiting the risk of AI replacing jobs. 

Sarandos stated that AI is being used to support creative professionals, not replace them. “These are real artists using better tools,” he said. He pointed out that AI is already helping with tasks like shot planning and early-stage visual development, which can give creators more flexibility and freedom to bring their ideas to life. 

Netflix reported $11 billion in revenue for the second quarter of the year—a 16% increase compared to the same period last year. Part of that growth was driven by the success of the final season of Squid Game, a Korean thriller that has become one of Netflix’s global hits. 

The streaming company also mentioned that its advertising division, though still small, is growing quickly and is expected to double in size in the coming months. 

Forrester analyst Mike Proulx noted that Netflix’s strong quarter was the result of a combination of quality content, price adjustments, and growth in advertising. He added that while Netflix still has room to grow its ad business, the hardest part, launching the ad platform, is already behind them. 

Away from AI being used in Netflix shows, the technology is also taking social media branding to another level as companies like Thumzup Media Corp. (NASDAQ: TZUP) work with businesses to leverage this technology in marketing and branding efforts. 

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