The technology generates videos and images from simple instructions, helping production teams speed up their work while lowering expenses. However, AI in entertainment remains a debated issue, with concerns about replacing human workers and creating content using other people's work without permission.
Lower Costs and Faster Production
Ted Sarandos explained that the AI-created scene in The Eternauts was completed ten times faster than traditional special effects methods. Without AI, this scene, showing a building falling in Buenos Aires, would have been too expensive for the show's budget.
Sarandos called it the first time AI final footage appeared on-screen in a Netflix original production. He added that the creators were happy with the final outcome.
Netflix announced a strong financial performance for the second quarter of the year, with revenue rising by 16% to $11 billion compared to the same period last year. The company's profits also increased from $2.1 billion to $3.1 billion.
This success was partly driven by the popular South Korean thriller Squid Game, whose third and final season attracted 122 million views.
Sarandos said AIallows smaller productions to use advanced effects that would have been too costly in the past.
Mixed Reactions in the Entertainment Industry
The use of AI has caused discussions in Hollywood, especially after the 2023 industry strike. The Screen Actors Guild–American Federation of Television and Radio Artists union demanded stricter controls over AI use during their three-month strike. Critics argue AI could harm the creative industry by replacing human work and lowering artistic standards.
In 2024, Tyler Perry cancelled an $800 million expansion of his Atlanta studio, expressing concerns that fast-growing AI video tools could affect jobs. Around the same time, tools like OpenAI's Sora were introduced, impressing people with their high-quality video generation but raising fears about employment in the industry.
Davier Yoon, co-founder of CraveFX animation studio in Singapore, said Netflix's adoption of AI was expected, as more studios start using these tools. According to him, AI adds to the options available for visual effect creators and can help smaller teams achieve big-screen
