Netflix co-CEO Ted Sarandos has thrown his support behind the use of generative artificial intelligence (AI) in film and television production, describing it as an “incredible opportunity” to empower creatives and streamline the production process.
Speaking after Netflix unveiled its robust second-quarter financial performance, Sarandos revealed that generative AI was recently used in a landmark scene of the Argentine science fiction series The Eternauts. The technology, which produces images and videos from text-based prompts, helped the production team create a dramatic building collapse sequence—marking the first time generative AI footage has been used in a final cut of a Netflix original series or film.
“The sequence in The Eternauts was completed using generative AI, and it allowed the team to finish that complex scene 10 times faster than traditional special effects methods,” Sarandos said during a press briefing. “The cost of doing it the traditional way just wouldn’t have been feasible for a show operating on that kind of budget.”
He added that the production team was “thrilled with the result,” emphasizing that generative AI offers not just cost-efficiency, but also creative flexibility. “This is not about replacing creatives—it’s about expanding what’s possible for them.”
Sarandos’ remarks, however, reignited a contentious debate within the global entertainment industry. The use of AI, particularly generative tools, remains a deeply divisive issue. Critics argue that increased automation could gradually displace human creatives—including visual effects artists, editors, and even performers—undermining the human touch that defines storytelling.
AI was one of the core issues behind the Hollywood strikes in 2023. The Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) mounted a three-month walkout over concerns that studios could use AI to replicate actors’ likenesses without compensation or consent. The union, along with the Writers Guild of America (WGA), demanded stricter regulations and protections for industry professionals against unregulated AI integration.
While a deal was eventually reached that placed certain guardrails around the use of AI, Sarandos’ enthusiastic endorsement suggests the technology’s expansion is far from over.
Despite the controversy, Netflix continues to dominate the global streaming landscape. The company reported revenue of $11.08 billion for the second quarter ending June 30, 2025—a 16% increase compared to the same period last year. The better-than-expected performance was driven in large part by the release of the third and final season of the hit South Korean series Squid Game, which has already attracted more than 122 million views worldwide.
“We continue to see strong subscriber engagement driven by local stories that resonate globally,” Sarandos noted. “From Squid Game to The Eternauts, we’re proud of the cultural impact our content continues to have.”
Netflix has been at the forefront of experimenting with emerging technologies, from advanced recommendation algorithms to virtual production techniques. With the incorporation of generative AI, the platform is once again testing the boundaries of digital storytelling.
Industry analysts say the use of AI in production is likely to expand as studios look for ways to cut costs and accelerate production timelines. However, they warn that such changes must be implemented with sensitivity to the concerns of labor unions and creatives.
“Netflix’s AI experiment in The Eternauts is both groundbreaking and risky,” said media analyst Carla Edmonds. “While it shows the power of innovation, it also underlines the need for clear ethical guidelines, especially when human creativity and livelihoods are at stake.”
Asked whether Netflix plans to expand the use of generative AI in other original productions, Sarandos was cautious but optimistic. “We’re still in the early stages, but what we’ve seen is promising. The key is ensuring that we’re using these tools to enhance creative vision—not replace it.”
The streaming giant is also reportedly investing in AI-driven localization tools, including automated dubbing and subtitling services, which could further reduce costs and increase the speed of global content distribution. However, these developments, too, have been met with criticism from voice actors and localization professionals who fear job losses and declining quality.
As Netflix continues to blaze trails in technology and storytelling, the industry finds itself at a critical crossroads. While tools like generative AI offer exciting new possibilities, they also present ethical dilemmas and regulatory challenges that demand careful navigation.
What remains clear is that AI is no longer a distant concept—it is now a present force reshaping the way stories are created, shared, and consumed. Whether that future will be collaborative or contentious depends on how companies like Netflix choose to wield that power.
For now, The Eternauts has secured a place in history—not just for its gripping narrative, but for its pioneering use of artificial intelligence in storytelling. And with Sarandos hinting at more AI-enhanced productions on the horizon, the conversation about the balance between innovation and humanity in film is only just beginning.
