The Rise of AI in Hollywood: Netflix’s Innovative Journey
Breaking Ground with AI Technology
The world of entertainment is witnessing a groundbreaking transformation with the introduction of artificial intelligence (AI) in filmmaking. Recently, companies specializing in video AI have been vocal about their collaborations with major Hollywood studios to enhance production workflows. Following this trend, Netflix has made its mark by officially incorporating AI into its content creation, marking a significant step in the convergence of technology and storytelling.
Netflix’s Bold Move: “El Eternauta”
At a recent post-results conference call, Netflix’s co-CEO Ted Sarandos announced an exciting development: the platform has utilized AI for the first time in generating final footage for its Argentine series, “El Eternauta.” This momentous leap in creativity was exemplified by a scene where a building collapses—crafted with the help of AI, showcasing the potential for new storytelling techniques.
Speed and Cost Efficiency
One of the standout features of this AI-driven approach is its efficiency. Sarandos revealed that the scene was completed ten times faster than it would have been using traditional visual effects methods, and the costs were notably lower. This enhancement in speed and savings signifies a potential shift in how productions can allocate their budgets and timelines, offering more room for creativity without the constant pressure of financial constraints.
Empowering Creators with Better Tools
Sarandos emphasized that the true power of AI lies not only in cost-cutting but also in enabling creators to enhance their work. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," he stated. Netflix’s internal production group has begun to see significant benefits, particularly in areas such as pre-visualization and shot planning. This technology allows creators to visualize their ideas, making the storytelling process more fluid and intuitive.
Expanded AI Applications at Netflix
But Netflix is not stopping at visual effects. Co-CEO Greg Peters discussed the platform’s diverse applications of generative AI, extending beyond filmmaking into personalization and search functionalities. With an AI-powered search tool already introduced earlier this year, Netflix is setting the stage for greater user engagement and satisfaction. In an exciting development, the company plans to launch interactive ads in the latter half of this year, further expanding the ways audiences can interact with content.
Impressive Revenue and Viewer Engagement
Despite the challenges faced by the entertainment industry, Netflix’s performance in the second quarter of 2025 remained robust. The platform reported an impressive revenue of $11.08 billion, marking a 16% increase compared to the previous year. With profitability reaching $3.13 billion, Netflix demonstrated its adaptability and success in a crowded market. More than 95 billion hours of content were streamed in the first half of 2025, highlighting the growing appetite for diverse programming, particularly non-English titles, which accounted for one-third of all views.
Bridging Creativity and Technology
As Netflix embraces AI technology, it stands at the frontier of a new Hollywood landscape, where artificial intelligence augments the creative process rather than replacing human ingenuity. This exciting evolution presents a myriad of opportunities for storytellers to experiment with new techniques, potentially reshaping audience experiences in ways never before imagined. By partnering AI with traditional storytelling, Netflix encourages a future where technology enhances the art of cinema, creating a richer tapestry of visual and emotional experiences for viewers worldwide.