Netflix has officially entered the AI era in content production. The streaming giant used AI visual effects for the first time in its Argentine sci-fi series The Eternauts. The tech helped animate a major building collapse scene, which would have taken far longer and cost significantly more using traditional VFX.
Co-CEO Ted Sarandos said generative AI helped speed up production while keeping quality intact. He called it an amazing opportunity for creators. According to him, AI allows filmmakers to build visually stunning scenes without spending big budgets. Netflix sees this as both a creative leap and a smart logistical solution. It opens new locations and changes how stories are made in the digital era.
The announcement came at a time when Netflix had reported a strong quarter with $11.08 billion in revenue, 16% more than a year ago. While hit shows, such as Squid Game Season 3, account for a large amount of the viewership, new ideas such as AI visual effects are indicators for what may come in the next wave of entertainment.
How AI Helped Create a Key Scene in The Eternauts
Netflix’s The Eternauts tells a gripping tale set in a snowy post-apocalyptic world. In one intense scene, a building collapses amidst chaos. According to Sarandos, the scene was completed ten times faster using generative AI than traditional effects.
The AI tool didn’t just save time it made the scene possible within budget limits. “The cost of it just wouldn’t have been feasible otherwise,” said Sarandos. He confirmed that this was the first instance of AI visual effects appearing in final footage of a Netflix original series.
The production team was thrilled with the outcome. Sarandos emphasized that AI wasn’t used to replace artists but to help creators achieve ambitious results that would otherwise be out of reach.
Why This Matters for the Entertainment Industry
The use of generative AI in TV and film has become one of the hottest debated issues in Hollywood. Many fear it could threaten creative jobs. These concerns peaked during the 2023 Hollywood strike, where actors and writers demanded stronger AI regulations.
Netflix’s approach shows a different perspective. It positions AI visual effects not as a job-killer, but as a budget-friendly creative enabler. Smaller productions now have access to visual tools that were once exclusive to blockbuster-level budgets.
Through generative AI, Netflix is enabling storytellers to create immersive experiences without the limitations of funding or scale. Though the conversation continues, we may see a shift in the broader industry from fear to opportunity following the streaming giant’s lead.
Streaming Success and AI Innovation Go Hand in Hand
Netflix isn’t just experimenting with technology it’s delivering strong numbers. The company reported $11.08 billion in quarterly revenue and credited global hits like Squid Game Season 3, which drew 122 million views, for much of that success.
However, unlike the professional films of past decades, advances in things like AI visual effects are supporting the long-term growth strategies for other stages of production at Netflix. As budgets shrink and audiences expect the level of cinematic visuals, Netflix is leaning heavily into smart solutions to expedite production processes and reduce costs.
This combination of creative aspiration and technology-inspiring solutions will help Netflix stay competitive in a crowded marketplace.
A Glimpse Into the Future of Filmmaking
AI visual effects in The Eternauts marks an important new chapter in content creation. With generative AI making its first entrance into actual on-screen footage, we could see greater adoption.
Other streaming services and studios are sure to be watching. If AI tools can reduce production time by 90% and create scenes that audiences find equally compelling, chances are they will be a part of the future of entertainment.
However, the journey ahead is about managing technology and talent. Netflix has shown how AI visual effects can complement and enhance human creativity, but not replace it if responsibly produced.
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