Netflix and Generative AI: A Bold Move in Entertainment

Netflix Embraces Generative AI in Filmmaking

As the entertainment sector assesses the appropriate application of generative AI within film production, Netflix is actively adopting the technology. The company’s recent quarterly earnings report, published on Tuesday, highlighted its strong position to capitalize on advancements in AI.

AI as a Creative Tool

Netflix does not envision generative AI as the primary foundation for its content creation. Instead, it recognizes the technology’s potential to enhance the efficiency of creative professionals.

“Exceptional artistry remains fundamental to producing compelling content,” stated Netflix CEO Ted Sarandos during Tuesday’s earnings discussion. “AI can provide creatives with improved tools to enrich the viewing experience for our subscribers, but it cannot independently generate a skilled storyteller.”

Early AI Implementations

Netflix initially utilized generative AI in completed footage with the Argentine series “The Eternaut,” specifically to depict a building’s collapse.

Subsequently, the production team for “Happy Gilmore 2” employed AI to de-age characters in the film’s introductory sequence. The producers of “Billionaires’ Bunker” also leveraged the technology during pre-production for visualizing wardrobe and set designs.

Future Outlook

“We are confident that AI will assist us and our creative collaborators in crafting narratives more effectively, rapidly, and innovatively,” Sarandos affirmed. “Our commitment to this technology is unwavering, but we are not pursuing novelty simply for its own sake.”

Industry Concerns and Debates

The integration of AI has sparked debate within the entertainment industry, with artists expressing concerns that Large Language Model (LLM)-powered tools, trained on their work without consent, could jeopardize their employment.

Netflix’s approach suggests studios are more inclined to utilize generative AI for visual effects enhancements rather than replacing actors. This is despite recent attention surrounding an AI actor, which has not yet secured any professional engagements.

However, these behind-the-scenes applications of AI still present potential implications for jobs in the visual effects field.

The Rise of Sora and Deepfake Concerns

Discussions intensified following OpenAI’s unveiling of Sora 2, its audio and video generation model, released without safeguards to prevent the creation of videos featuring actors and historical figures. SAG-AFTRA and actor Bryan Cranston recently urged OpenAI to implement stronger protections against the deepfaking of actors, including Cranston himself.

Netflix’s Response to Sora

When questioned by an investor regarding Sora’s potential impact, Sarandos acknowledged the possibility of effects on content creators. However, he expressed less concern for the film and television industry, as communicated to investors.

“We do not anticipate AI supplanting creativity,” he stated.

Financial Performance

Netflix’s quarterly revenue experienced a 17% year-over-year increase, reaching $11.5 billion. Despite this growth, the figure fell short of the company’s projected forecast.

Here's a breakdown of key areas where Netflix is exploring AI:

• Visual Effects: Enhancing and accelerating the creation of special effects.
• Pre-Production: Visualizing sets, wardrobes, and storyboards.
• Post-Production: Tasks like de-aging actors or creating complex scenes.