Netflix Bets Big on AI, But Is It the Future of Filmmaking?

Netflix is diving headfirst into the world of generative AI, even as the entertainment industry debates its role. The streaming giant recently shared in its quarterly report that it sees AI as a powerful tool to boost creativity, not replace it. CEO Ted Sarandos made it clear that AI won't turn anyone into a great storyteller overnight, but it can give creators better tools to enhance their work.

AI in Netflix Productions

Netflix has already started using AI in some of its productions. For example, it used AI to create a collapsing building scene in the Argentine show "The Eternaut." Other productions like "Happy Gilmore 2" and "Billionaires' Bunker" have also experimented with AI for tasks like making characters look younger or designing sets. Sarandos believes AI will help tell stories better, faster, and in new ways, but Netflix isn't just using AI for the sake of it.

Industry Divide Over AI

The entertainment industry has been divided over AI. Some artists worry that AI tools trained on their work without permission could threaten their jobs. Netflix's approach seems to focus more on using AI for special effects rather than replacing actors. However, even these uses could impact jobs in visual effects.

The debate heated up when OpenAI released its Sora 2 model, which can generate audio and video without strict guardrails. This has raised concerns about deepfaking actors and historical figures. Hollywood actors and organizations like SAG-AFTRA have urged OpenAI to implement stronger safeguards.

Revenue and Future Outlook

Despite these concerns, Netflix's revenue grew by 17% year-over-year to $11.5 billion, though it fell short of the company's forecast. Sarandos remains optimistic, stating that AI won't replace creativity, at least not in the near future.