Overview
- In its shareholder letter, Netflix said it is well positioned to leverage advances in AI and described generative tools as a significant opportunity across recommendations, advertising and content.
- The company detailed early production uses — VFX in The Eternaut, de‑aging in Happy Gilmore 2 using Eyeline’s volumetric capture, and pre‑visualization on Billionaires’ Bunker — and said it has issued AI usage guidance for creators.
- Product experiments include a beta conversational search designed to help members find the right title and AI-driven localization of promotional assets for different languages and regions.
- Co-CEO Ted Sarandos said AI will enhance creative work rather than replace it and argued AI video is more likely to pull viewing from user-generated content than professionally produced film and TV, citing music as a parallel.
- Quarterly revenue rose 17% year over year to $11.5 billion but missed forecasts, earnings per share came in below estimates, and the stock fell about 5.6% after the report.