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Netflix Says It Is 'All In' on Generative AI After Earnings Letter

Leaders present the technology as an enhancer for storytellers, pointing to early production wins plus newly issued guidelines.

Overview

  • Netflix told investors it is very well positioned to leverage AI across its business, with executives emphasizing a push to use the technology without chasing novelty.
  • Recent examples include generative tools in final footage for The Eternaut, de‑aging in Happy Gilmore 2 using Eyeline’s capture tech, and pre‑visualization on Billionaires’ Bunker.
  • The company has issued guidelines for AI use in production and said it already applies AI and machine learning to its product experience, ad placement, and localization.
  • Ted Sarandos said AI will not replace human creativity, predicting any near‑term viewing shifts will come from user‑generated video rather than professionally made series or films, citing music as a guide.
  • Quarterly revenue rose 17% year over year to $11.5 billion, missing Netflix’s forecast, as industry pressure over tools like OpenAI’s Sora 2 intensifies with objections from unions, talent agencies, and the MLK estate.