While Hollywood is still wondering whether generative AI is friend or foe, Netflix has already made up its mind. And no, he’s not going to apologize.
In its quarterly report published on Tuesday, the streaming giant made it clear that the company is “perfectly positioned to effectively leverage advances in AI.” For the competition, this sounds like a gauntlet thrown down. The question is whether there will be another wave of strikes in Hollywood – this time of special effects and CGI experts.
A tool, not a replacement – Netflix puts employees at the heart
Hollywood’s main concern about the increasingly widespread use of genAI is the threat of job cuts on film (and series) sets. Netflix and CEO Ted Sarandos make it clear:
It takes a great artist to create something great
AI is therefore supposed to be a tool in the hands of creators, not their substitute. Netflix doesn’t plan to generate entire movies using algorithms – it just wants its teams to work faster and more efficiently.
Practice? The Argentine series “The Eternaut” used AI to create a collapsing building scene and train scenes (no spoilers). In Happy Gilmore 2, technology rejuvenated the actors in the opening sequence. “Billionaires’ Bunker” producers tested the AI in pre-production by visualizing costumes and sets.
AI will help us and our partners tell stories better, faster and in new ways. We are 100% ready for it, but we do not pursue newness for its own sake
– emphasized Sarandos.
It must be admitted that this is a very reasonable approach, especially considering that the cinematography industry is becoming more and more bold about the possibilities of genAI tools. Interestingly, the film studio Lionsgate announced a few months ago that it is working on its own genAI model for generating video. The model is to be trained on the Lionsgate library (John Wick, The Hunger Games) and will be used by directors and editors, e.g. in situations where a given shot should last a few seconds longer.
Hollywood on the defensive
Cinematography is a business, and business likes profit. Therefore, the entertainment industry has reasons to be concerned. Artists rightly point out that various genAI tools were often trained on their works without consent, which could pose a real threat to jobs. Especially in the visual effects industry.
The situation escalated when OpenAI released Sora 2 (a model that generates audio and video) without appropriate safeguards against creating deepfakes of famous actors. SAG-AFTRA and Bryan Cranston immediately called for stronger protections.
When asked about Sora’s impact on Netflix, Sarandos admitted that content creators “may be affected,” but remains calm when it comes to movies and series.
We are not worried that AI will replace creativity
– he assured investors.
The numbers don’t lie
Netflix’s quarterly revenue increased by 17% year over year, reaching USD 11.5 billion, although the result was lower than forecast. No wonder – investing in AI is a long-term game. Netflix has made it clear: AI is part of the future of production. The question is whether the rest of Hollywood can catch up before it falls behind.
