Netflix goes all in on generative AI just to hold the boom mic

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While Hollywood is still arguing over whether AI will one day write the next Oppenheimer or just ruin The Office reruns, Netflix seems to have made up its mind: it’s all in, but tastefully.

In its latest quarterly earnings report, Netflix told investors it’s “very well positioned to effectively leverage ongoing advances in AI.” 

Yes, robots are coming for Hollywood, but Netflix swears it’s using them responsibly (and creatively).

CEO Ted Sarandos was quick to clarify during Tuesday’s earnings call that AI isn’t about to replace directors, writers, or Ryan Gosling anytime soon. 

“It takes a great artist to make something great,” Sarandos said. 

“AI can give creatives better tools, but it doesn’t automatically make you a great storyteller if you’re not.” In other words, AI can pass the camera, not call the shots.

Still, the streaming giant has already dabbled in generative tools. The Argentine sci-fi series The Eternaut used AI to collapse a building, digitally, thankfully. 

Happy Gilmore 2 reportedly used it to make characters look younger (move over, de-aging makeup), and the upcoming Billionaires’ Bunker used AI to imagine wardrobe and sets during pre-production.

Sarandos insists Netflix is all in on AI helping filmmakers tell stories better, faster, and in new ways,  but not for novelty’s sake. That’s Hollywood-speak for: don’t expect ChatGPT to direct a rom-com just yet.

The announcement comes as the entertainment world grapples with how far AI should go. 

Visual effects artists are nervous, actors are wary, and the whole industry is side-eyeing OpenAI after it dropped Sora 2, its powerful new video generator that doesn’t stop users from recreating real people, cue actor Bryan Cranston calling for stricter guardrails.

As for Netflix? Sarandos told investors he’s not sweating it: “We’re not worried about AI replacing creativity.”

The only thing Netflix is concerned about is revenue. Despite a 17% year-over-year bump to $11.5 billion, the streamer still fell short of forecasts. Turns out even AI can’t predict the next big hit.