Netflix says it used generative AI in sci-fi show, and plans to introduce interactive ads
Netflix has admitted that it used generative AI to create a scene in its sci-fi show, The Eternaut. The streaming service's Co-CEO, Ted Sarandos, said the AI-powered VFX helped finish the sequence 10x faster compared to those done with regular workflows.
He also justified the use of the AI by saying the cost of it (creating a real version) wouldn't have been feasible for a show on that budget. You can watch the earnings call video (31:30), or read the transcript on Netflix's website.
The AI content in question is about 2 or 3 seconds long, I've seen the video, it shows a building collapsing, and the visual effects are unremarkable. You can watch it in Episode 6 of The Eternaut Season 1, at around the 60-minute mark. Who cares about a 2-second scene? It's not about the duration, but the fact that a premium streaming service is using AI instead of work done by real artists.
It's quite surprising that Netflix talked about using AI openly, perhaps they wanted to avoid bad press as opposed to someone finding it and started spreading news about it. Or, maybe the company is embracing generative AI by admitting it to their investors, and this is a sign we can expect more of it.
Using AI to add special effects for videos is debatable, it's either AI-generated or CGI, both are fake, right? When a talented graphics/animation designer works on CGI, the results are usually breathtaking. The same could be achieved in AI with the help of the designer, but when you remove the human element from it, that's unethical, regardless of how you paint it. Why not use a miniature set for the VFX?
The fact that Netflix said the use of AI saved costs is laughable. What next, "We are just a startup?" Take a look at this chart from the earnings call. Netflix earned $11 Billion in Q2, 2025, which was a 15.9% increase year-over-year growth.
That's a new record in revenue. They have only made about $21.5 Billion in the past six months alone, and they needed to cut some costs and use AI for that 2-second footage.
Now that AI is saving you the cost, how about lowering those subscription prices? Their strategy is remorseless. Increase the subscription prices, throw ads into the cheapest tiers (more revenue from advertisers + force people to get ad free plans), remove password sharing to get even more subscriptions, and now they want to start using AI to cut the costs.
Netflix plans to show generative AI ads in streams next year, and wants to introduce interactive ads (that appear when you pause a video) in the second half of 2025.
The worst thing about this is it's just the start, you bet they'll use AI to make even more money, and fire people, chalk that up as cost-cutting too.
Netflix says it is thrilled with the result of using generative AI, and claims that the audience were as well. Are you? Is this what you are paying for?
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