Netflix Goes ‘All in’ on Generative AI as Entertainment Industry Remains Divided

Why It Matters

5 billion, up 17% year‑over‑year but below guidance.

Summary

Netflix signaled it is ‘all in’ on using generative AI as a creative tool, telling investors it’s well positioned to leverage advances while stopping short of letting AI replace storytellers. The streamer has already employed AI for effects and pre‑production — notably a collapse scene in The Eternaut and de‑aging/visual concepts on other projects — and sees the tech boosting speed and creativity even as it risks pressure on VFX roles. CEO Ted Sarandos framed the move as complementary to artists amid industry debates over training data and deepfakes, even as Netflix reported revenue of $11.5 billion, up 17% year‑over‑year but below guidance.