Netflix has now made an official move towards entering the generative AI landscape and actively utilizing said technology when creating their shows and movies. In one of the earnings calls in 2022, Netflix CO-CEO Ted Sarandos said that Netflix has already applied GenAI to generate a scene in the Argentine series, El Atonata. The AI was used to produce a scene of a building collapse and Sarandos pointed out that the resulting materials are ten times faster and less expensive to produce compared with classical visual effects.
It is a massive development in the manner in which streaming platforms and studios go about production. Netflix does not view AI as a threat to creative professionals, as it would help creators improve their efficiency instead. Sarandos pointed out that they remain first of all honest people who perform real work but now they have better tools at their disposal. AI is currently employed at different phases of production including pre-visualization, shot planning and visual effects. These tools are creating opportunities that were previously limited to commercially bankrolled productions.
To use an example, it is now possible to use AI to achieve effects that were very costly or time-consuming to carry out on smaller projects. CO-CEO Greg Peters noted that Netflix also deploys GenAI in other fields besides production. It is being utilized in enhancing personalization as well as searching and advertising. The company even has the intention to launch interactive adverts to be driven by AI in the second half of 2025. The financial outcomes support Netflix investments.
In Q2, the amount of revenue the company generated amounted to $11.08 billion dollars, which is a 16% growth compared to the same period a year ago. It made a profit of $3.13 billion dollars. In the first half of 2025, viewers watched more than $95 billion hours of content. Quite a fascinating fact is that non-English titles made up a third of the total views which shows that they are requested worldwide.
On the whole the utilization of GenAI is one of the rational and prospective decisions of Netflix. People are not to be replaced but guided to make things better and faster. With the trend there is the possibility of transforming the nature of the production of movies and series more so in an industry that is constantly seeking to increase the quality, reduce cost and time.
