Netflix CEO: Fully committed to AI, but "great works require great artists"

Netflix is fully embracing generative AI, but firmly believes that this technology is merely a tool to improve creative efficiency, not the source of creativity. In its quarterly earnings report released on Tuesday, the streaming giant told investors that the company is "in a very advantageous position to effectively leverage the ongoing advances in AI." Netflix co-CEO Ted Sarandos emphasized in the subsequent earnings call that the company will "go all-in" on AI to help creative partners "tell stories better, faster, and in new ways." Despite the positive attitude, Sarandos drew clear boundaries for the market. He pointed out that AI cannot automatically turn someone who is not good at storytelling into a great storyteller. “Creating great works requires great artists,” he said. Netflix’s stance may set an industry trend, indicating that production companies are more likely to use AI for behind-the-scenes work such as visual effects, rather than directly replacing actors. According to the earnings report, quarterly revenue grew 17% year-on-year to $11.5 billion, falling short of the company's expectations. **AI Empowers Creativity, Not Replaces It** Netflix executives repeatedly stress that AI’s role is as an assisting tool, not a replacement for creators. Sarandos stated in the earnings call that AI can provide better tools for creative personnel to enhance the overall viewing experience for members, but it does not in itself create great storytelling. “We’re not worried that AI will replace creativity,” Sarandos said. He added that Netflix’s embrace of AI is to help creative partners improve efficiency and explore new forms of expression, not to pursue novelty for novelty’s sake. This perspective is intended to reassure the creative community while demonstrating to investors the company's prudence and pragmatism in adopting new technologies. **Already Trialed in Multiple Productions** Netflix’s investment in AI isn’t just talk. The company has already applied generative AI technology in the production process of several works. Reportedly, in the Argentine series "The Eternaut," Netflix used generative AI for the first time in the final shot to create a grand scene of a building collapse. Additionally, the production team for "Happy Gilmore 2" used the technology to make characters appear younger in the opening scenes; while the team for "Billionaires’ Bunker" used AI during pre-production to design costumes and set concepts. These examples show that Netflix is actively exploring practical applications of AI in special effects, post-production, and early-stage planning. **Industry Divisions and Lingering Concerns** Netflix’s proactive stance contrasts sharply with ongoing industry controversies. Many artists fear that AI models trained on their works without consent could threaten their jobs and intellectual property rights. Recent controversies have escalated following OpenAI’s release of its video generation model, Sora 2. The model launched without sufficient technical safeguards to prevent users from generating deepfake videos of specific actors and historical figures. In response, Hollywood industry group SAG-AFTRA and well-known actor Bryan Cranston have publicly called on OpenAI to implement stronger restrictions. When asked about Sora’s impact on Netflix, Sarandos acknowledged that content creators may be affected, but said he was less concerned about threats to the movie and television business itself. Risk Warning and Disclaimer The market has risks and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the individual investment goals, financial situations, or needs of specific users. Users should consider whether any opinions, viewpoints, or conclusions in this article are appropriate for their particular circumstances. Investing based on this article is at your own risk.