In a groundbreaking move, Netflix has announced its first foray into generative artificial intelligence (GenAI) in its original programming, setting a new standard in the global streaming market. The company's co-CEO, Ted Sarandos, revealed during a recent earnings call that GenAI has been successfully deployed in the Argentinian series "The Eternals," where it was used to create a scene depicting a building collapse.
According to Sarandos, the production efficiency of this scene was ten times faster than traditional visual effects tools, with a significant reduction in costs. He emphasized that AI not only makes film and television production more economical but also enhances the quality of the work. With the advent of AI tools, creators can utilize advanced tools for visualization and shot planning, achieving higher production standards. Previously, only high-budget projects could afford cutting-edge visual effects, such as the "age reversal" technique for characters, but now these capabilities are within reach.
Netflix's embrace of GenAI extends beyond film and television production. The company is actively incorporating GenAI into personalized recommendations, search, and advertising. Plans are underway to launch interactive ads in the second half of 2025, following the introduction of AI-driven search functionality earlier this year. These new technologies aim to further enhance user experience, making it easier for viewers to find content they enjoy.
In the second quarter, Netflix reported revenues of $11.08 billion, a 16% increase year-over-year, with profits reaching $3.13 billion. The company also disclosed that users watched over 95 billion hours of content in the first half of 2025, with non-English shows accounting for one-third of the total viewing time. This data underscores Netflix's global market influence and its growing user base.
Netflix's adoption of generative artificial intelligence signifies a pivotal innovation in both film and television production and user experience. It offers creators a more efficient way of working and provides viewers with a more personalized content selection process, ushering in a new era of streaming services.