Netflix goes all-in on generative AI, but the entertainment industry is divided
Netflix is embracing generative AI as the entertainment industry ponders when to use it in filmmaking. Netflix’s quarterly earnings report, released on Tuesday afternoon. In a letter to investors Netflix stated that it was “very well-positioned to effectively leverage ongoing AI advances.”
Netflix doesn’t plan to use generative AI to create its content, but believes the technology can be used to improve the efficiency of creatives. Ted Sarandos, Netflix CEO, said on the Tuesday earnings call that “it takes a great artistic talent to make something great.” “AI can give creators better tools to improve their overall TV/movie experiences for our members. But it doesn’t make you a good storyteller if that’s not you.”
Earlier in the year, Netflix announced it used generative AI for the first time to create a collapsed building scene in the Argentine series “The Eternaut.” The filmmakers of “Happy Gilmore 2″for example, used generative AI in the opening scene to make the characters appear younger. Meanwhile, the producers of “Billionaires’ Bunker”used the technology to visualize wardrobe and set designs.
Sarandos stated that “we’re confident AI will help us and our creative partners to tell stories better, quicker, and in new and innovative ways.” “We’re on board with that, but we aren’t chasing novelty just for the sake of novelty here.”
AI is a controversial topic in the entertainment sector, as artists fear that LLM-powered software that uses their work without their consent as training data could negatively impact their careers.
Using Netflix as a barometer, it appears that studios will use generative AI to create special effects, rather than replace actors. This is true even though an AI actor caused a stir among Hollywood actors despite not having booked any gigs yet (that we are aware of). However, these behind-the scenes AI uses could still impact visual effects jobs.October 27-29, 2025
These debates recently escalated when ChatGPT maker OpenAI unveiled its Sora 2 audio and video generation model, which was released without guardrails that prevent users from generating videos of some actors and historical figures. Just this week, Hollywood trade association SAG-AFTRA (and actor Bryan Cranston) released their Sora 2 audio and video generation model without guardrails that prevent users from generating videos of some actors and historical figures. OpenAI was urged to implement stronger guardrails for deepfaking actors such as Cranston.
When Sarandos was asked by an investor about the impact Sora could have on Netflix, Sarandos said that it “starts making sense” that content producers could be affected, but that he is less concerned about the movie and television business.
He said, “We are not concerned about AI replacing creative talent.”
Netflix’s quarterly revenue increased 17% over the previous year to $11.5 billion. However, this was below the company’s forecast.
Amanda Silberling, a senior writer for TechCrunch, covers the intersection of culture and technology. She has written for publications such as Polygon, MTV and the Kenyon Review. She is co-hosting Wow If True, an internet culture podcast, with science fiction writer Isabel J. Kim. She worked as a museum educator, film festival coordinator, and grassroots organizer before joining TechCrunch. She holds a B.A. She holds a B.A.
You can contact or verify outreach from Amanda by emailing amanda@techcrunch.com or via encrypted message at @amanda.100 on Signal.
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