Netflix’s Bold Leap into Artificial Intelligence
In a groundbreaking move, Netflix has ventured into the realm of artificial intelligence (AI) within its productions for the first time. This decision comes with promises from Ted Sarandos, co-CEO of Netflix, that such technology will not only reduce costs but also elevate the quality of films and television programs. The Argentinian science fiction series El Eternauta (The Eternaut) stands at the forefront of this innovation.
Sarandos highlights that this series marks a crucial point in Netflix’s ongoing exploration of generative AI. The storyline of The Eternaut revolves around a group of survivors struggling amidst a calamitous and toxic snowfall that envelops Buenos Aires. Such a challenging narrative backdrop was enhanced through the use of AI tools, especially in the visual effects domain.
What Makes AI So Special?
One of the standout achievements was the AI-assisted depiction of a building’s collapse, which, according to Sarandos, was executed with an astonishing speed—ten times quicker than traditional methods. The integration of AI allowed for a more efficient workflow, enabling VFX artists to create stunning visuals that would otherwise be cost-prohibitive for a mid-range budget.
Sarandos explains, “The cost of [the special effects without AI] just wouldn’t have been feasible for a show in that budget.” This aspect of AI not only supports production efficiency but significantly impacts budgeting, potentially paving the way for richer storytelling without the traditional financial constraints.
Concerns in the Industry
However, the incorporation of AI in filmmaking is not without its pitfalls. It has raised eyebrows across the industry, primarily due to fears of job losses in sectors such as production and visual effects. The tumultuous landscape for creators and artists came to a head in 2023, during strikes by Hollywood actors and writers that centered around ensuring AI technologies are utilized responsibly without encroaching on job security. Safeguarding these creative roles remains a priority, as industry leaders navigate the balance between innovation and employment.
Sarandos emphasizes that the workforce is crucial in this transition: “This is real people doing real work with better tools.” According to him, AI has already shown tangible benefits in production processes such as pre-visualization and shot planning. By augmenting the tools available to creators, AI can expand the horizons of storytelling on screen, making this an exciting time for filmmakers.
Netflix’s Financial Landscape
These strides in AI come at a time when Netflix has reported impressive financial results, with an $11 billion revenue for the second quarter, marking a 16% increase year-on-year. The success of their high-profile productions, including the final series of Korean thriller Squid Game, has contributed significantly to their booming revenue.
Moreover, Netflix’s burgeoning advertising business is projected to grow, with expectations of doubling in size this year. Analysts have noted that a combination of standout content, strategic pricing, and a more robust advertising approach has spurred this growth. As Mike Proulx from Forrester remarked, Netflix’s ability to roll out their proprietary ad tech platform has been a game changer in their operations.
Ultimately, Netflix’s integration of generative AI into its creative processes opens up exhilarating possibilities for the future of film and television, blending technology with artistry in ways previously thought unachievable.