For the first time in its production history, Netflix has used generative artificial intelligence (AI) to create visual effects in one of its original series, marking a significant shift in how the streaming giant approaches content creation.
The reveal came from Netflix Co-CEO Ted Sarandos, who announced that the technology was used in The Eternaut, a science fiction drama produced in Argentina. Specifically, generative AI was employed to craft a complex building collapse scene that, according to Sarandos, would have been prohibitively expensive using traditional VFX techniques.
"This is the first time final generative AI footage has appeared on screen in a Netflix original," Sarandos confirmed. “The technology allowed our team to achieve cinematic visuals on a modest budget. The creators were thrilled with the results.”
Generative AI tools can synthesize video and imagery from simple text prompts, allowing filmmakers to render scenes more quickly and cost-effectively. While this innovation has opened up creative possibilities, it also touches on deeper industry concerns.
Netflix’s AI milestone coincided with a strong financial report for Q2 2025, showing a 16% year-on-year revenue increase to $11 billion. Net profits rose from $2.1 billion to $3.1 billion, driven in part by major releases such as Squid Game: The Challenge, which has drawn 122 million views to date.
Despite the company’s optimism, the broader entertainment industry remains divided on the use of AI. Critics warn that generative tools often rely on vast datasets—sometimes scraping existing creative work without permission—and could lead to significant job displacement. These concerns fueled the 2023 Hollywood strikes, where writers and actors demanded clearer AI regulations.
In 2024, filmmaker Tyler Perry paused an $800 million expansion of his Atlanta studio, citing AI’s looming impact on industry employment. Tools like OpenAI’s Sora, capable of producing high-quality video content from text prompts, have both excited and unsettled professionals.
Still, some view AI as a new instrument rather than a replacement. Davier Yoon, co-founder of Singapore-based animation studio CraveFX, sees Netflix’s move as a sign of the times. “Generative AI allows smaller studios to produce visuals once limited to blockbuster budgets,” he said. “At the end of the day, it’s the artist—not AI—who shapes the final image.”
As AI continues to redefine what’s possible in storytelling, Netflix’s adoption of the technology signals a new era—one where cost, creativity, and controversy now share the spotlight.
#With inputs from BBC
Bd-pratidin English/ Jisan