Netflix just declared itself "all in" on generative AI, marking a decisive break from Hollywood's cautious approach to the technology. While the entertainment industry wrestles with AI's creative implications, the streaming giant is already using AI for visual effects and pre-production across multiple shows, signaling a fundamental shift in how content gets made.
Netflix just drew a line in the sand on AI. While Hollywood continues to fight generative AI adoption, the streaming giant announced during its Q3 earnings call that it's going "all in" on artificial intelligence tools for content creation. The timing couldn't be more pointed - just as industry tensions over AI reach a boiling point.
"We're confident that AI is going to help us and help our creative partners tell stories better, faster, and in new ways," CEO Ted Sarandos told investors Tuesday. "We're all in on that, but we're not chasing novelty for novelty's sake here." The comments came as Netflix reported $11.5 billion in quarterly revenue, up 17% year-over-year, though slightly below forecasts.
The company isn't just talking about AI - it's actively deploying it. Netflix has already used generative AI in final footage for the first time in the Argentine series "The Eternaut," creating a building collapse scene that would have been prohibitively expensive with traditional effects. The filmmakers behind "Happy Gilmore 2" took it further, using AI to make characters look younger in the opening sequence, while "Billionaires' Bunker" producers relied on AI for pre-production visualization of wardrobes and sets.
"It takes a great artist to make something great," Sarandos emphasized during the call. "AI can give creatives better tools to enhance their overall TV/movie experience for our members, but it doesn't automatically make you a great storyteller if you're not." It's a careful balance - embracing efficiency without undermining the human creative process that drives subscriber engagement.
The move puts Netflix directly at odds with much of Hollywood, where AI remains deeply contentious. The entertainment industry has been grappling with concerns that AI tools trained on copyrighted content without consent could eliminate creative jobs. Those tensions exploded recently when OpenAI released its Sora 2 video generation model without adequate guardrails against deepfaking actors.
Just this week, SAG-AFTRA and "Breaking Bad" star Bryan Cranston publicly pressured OpenAI to implement stronger protections against unauthorized deepfakes. The incident highlighted Hollywood's deep unease with AI technology that can replicate performers without permission or compensation. Even the recent emergence of an AI-generated actress called "Tilly Norwood" sparked outrage among working actors, despite the digital performer not landing any confirmed roles.
