Netflix has integrated generative artificial intelligence (AI) into an original television series for the first time, signaling a potential shift in production methods within the entertainment industry. Ted Sarandos, co-chief executive of the streaming giant, confirmed that AI was utilized to create a building collapse scene in the Argentine science fiction show, The Eternaut. This application of AI reportedly enabled the production team to complete the sequence significantly faster and at a reduced cost, making advanced visual effects accessible to productions with tighter budgets.
The specific generative AI tool employed in The Eternaut allowed the production team to realize the building collapse sequence in Buenos Aires approximately 10 times faster than conventional special effects methods. Sarandos stated, “The cost of it would just wouldn’t have been feasible for a show in that budget. That sequence actually is the very first [generative] AI final footage to appear on screen in a Netflix original series or film. So the creators were thrilled with the result.” This move comes as Netflix reported a 16% increase in revenue to $11 billion (£8.25 billion) for the three months ending June, with profits rising from $2.1 billion to $3.1 billion, partly attributed to the success of Squid Game.
Despite the perceived benefits, the use of generative AI in content creation remains a contentious issue within the entertainment sector. Concerns center on the technology’s potential to utilize existing creative works without consent and its implications for human employment. These anxieties were a major point of contention during the 2023 Hollywood strike, where the Screen Actors Guild–American Federation of Television and Radio Artists union advocated for stricter regulations on AI use. In a notable instance reflecting these fears, film mogul Tyler Perry halted an $800 million expansion of his Atlanta studio in 2024, citing concerns that advancements in AI-generated videos, such as those from OpenAI’s Sora, could impact job security.
However, industry professionals like Davier Yoon, co-founder of Singapore animation studio CraveFX, view Netflix’s adoption of generative AI as an expected progression. Yoon suggests that AI tools broaden the capabilities of visual effects artists, enabling smaller studios to achieve high-budget visual aesthetics. He commented, “It feels like a matter of time. AI definitely opens the gate to allow smaller studios to achieve big budget-looking visuals. Ultimately, it is the artist who decides what is in the final image, not AI.” This perspective highlights the ongoing debate and evolving role of AI within the creative and production processes of the global entertainment industry.
