Netflix Embraces Generative AI as Industry Grapples with New Technology

As the entertainment industry navigates the evolving role of generative AI, Netflix is emphasizing its strategic adoption. In a letter to investors released Tuesday, October 3, 2023, Netflix stated it is “very well positioned to effectively leverage ongoing advances in AI.”

The streaming giant doesn’t envision generative AI as a primary content driver but believes it holds significant potential as a tool to enhance creative workflows. “It takes a great artist to make something great,” CEO Ted Sarandos said during Tuesday’s earnings call. “AI can give creatives better tools to enhance their overall TV/movie experience, but it doesn’s automatically make you a great storyteller.”

Netflix has already deployed generative AI in various productions. “The Eternaut” utilized the technology to create a building collapse scene, while “Happy Gilmore 2” employed it for de-aging actors in the opening sequence. Producers of “Billionaires’ Bunker” leveraged AI for pre-production design.

Sarandos affirmed, “We’re confident that AI is going to help us and help our creative partners tell stories better, faster, and in new ways. We’re all in on that, but we’re not chasing novelty for novelty’s sake.”

The integration of AI has sparked debate within the entertainment industry, with concerns raised over the use of artists’ work for training data. The recent unveiling of OpenAI’s Sora 2, a video and audio generation model, has further intensified these discussions. SAG-AFTRA and actor Bryan Cranston recently urged OpenAI to implement stronger safeguards against deepfaking.

Despite investor inquiries regarding Sora’s potential impact, Sarandos expressed limited concern for the film and television sector. Netflix reported quarterly revenue of $11.5 billion, a 17% year-over-year increase, though this figure missed company projections.

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