Netflix Unveils AI-Powered Filmmaking with Record Growth

News Desk

Islamabad: Global streaming powerhouse Netflix has announced that it has started incorporating generative artificial intelligence (GenAI) into the production process of its films and series, marking a major transformation in content creation and finalization.

The revelation came during the company’s quarterly earnings call on Thursday, where Netflix co-CEO Ted Sarandos disclosed that GenAI-generated footage has been used in the upcoming Argentine sci-fi series El Eternauta (The Eternaut). Adapted from a classic graphic novel, the series includes what Sarandos described as “the very first GenAI final footage to appear on screen” — specifically, a scene showing a building collapsing.

Sarandos highlighted that the visual effects for this scene were completed ten times faster than traditional VFX methods would allow, and at a significantly lower cost.

“We believe AI offers an incredible opportunity to help creators produce films and series not just more cheaply, but better,” Sarandos explained. “There are AI-powered creative tools. This is real people doing real work with enhanced tools.”

He also mentioned that Netflix’s internal production team worked closely with external producers to bring the GenAI-enhanced scene to fruition.

The executive emphasized that generative AI tools are being applied across multiple stages of production — including pre-visualization, shot planning, and de-aging — features that were previously accessible only to projects with large budgets.

Co-CEO Greg Peters added that AI is being broadly integrated into the company’s operations, including improving personalization, advertising, and search functions. Netflix introduced an AI-driven search feature earlier this year and plans to launch interactive AI-powered advertisements in the second half of 2025.

The adoption of AI in Hollywood has sparked debate recently, with industry professionals and unions expressing concerns over job security and the preservation of creative integrity. However, Netflix framed GenAI as a collaborative tool designed to enhance human creativity rather than replace it.

On the financial front, Netflix reported strong second-quarter results for 2025, posting $11.08 billion in revenue—a 16 percent increase from the same quarter last year—and a net profit of $3.13 billion.

The streaming service revealed that users streamed over 95 billion hours of content in the first half of the year, with non-English titles accounting for about one-third of total viewing hours, highlighting the company’s expanding global reach and diverse content offerings.