TL;DR
- Netflix's Innovation: The streaming giant has employed AI-generated visual effects for the first time in its original series.
- Cost and Time Efficiency: Utilization of AI allowed for quicker production, completing scenes ten times faster than traditional methods.
- Industry Concerns: The trend sparks debates about job security and ethical implications within the entertainment sector.
- Financial Performance: Netflix reported significant profits, partly attributed to innovations like these.
Netflix Utilizes AI Effects for the First Time to Cut Costs
In a groundbreaking move, Netflix has announced the use of artificial intelligence (AI) for visual effects in its original series, “The Eternaut.” This marks the first instance where generative AI tools are employed in a Netflix production, aimed primarily at reducing both time and costs associated with visual effects (VFX) creation.
The streaming industry is no stranger to innovation, but this latest development showcases Netflix’s commitment to leveraging technology in production workflows. During an earnings call, co-CEO Ted Sarandos revealed that the AI was instrumental in crafting a sequence depicting a building collapsing in Buenos Aires, a pivotal moment within the sci-fi narrative of “The Eternaut.” By using generative AI, the production team was able to complete this VFX sequence ten times faster than traditional methods would allow[^1][^2].
Efficiency through AI
Utilizing AI in visual effects production is a significant shift in the entertainment industry. Sarandos emphasized the cost-effectiveness of AI tools, stating, “The cost of creating the scene without AI just wouldn't have been feasible for a show on that budget.” This approach not only enhances speed but also allows productions with smaller budgets to afford high-quality effects. Such financial prudence is crucial as Netflix continues to navigate a competitive streaming environment.
In financial terms, Netflix is reaping the rewards of this innovative approach. The company announced a robust profit of $3.1 billion in Q2 2025, a dramatic increase from the previous year’s $2.1 billion. This financial success coincides with the launch of the final season of their smash hit, “Squid Game,” which has attracted over 122 million views, contributing to the revenue growth[^2][^3].
Industry Response and Concerns
However, the shift towards AI-generated effects has raised eyebrows within the industry. Concerns over job security have been widely discussed, especially in light of the recent Hollywood strikes focused on labor rights and ethical standards in AI usage. Critics argue that reliance on AI could lead to fewer opportunities for skilled visual effects artists and technicians.
“We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper,” stated Sarandos. He further noted that AI tools could significantly enhance processes like visualization and shot planning without displacing human talent[^1].
Conclusion
Netflix's venture into AI for visual effects is a significant milestone that highlights the fusion of technology and creativity in filmmaking. While this innovation promises efficiency and cost savings, it also invites scrutiny from industry professionals and advocates alike. As the conversation around AI in entertainment evolves, it will be vital for stakeholders to address the ethical implications and seek balanced solutions that protect both artistic integrity and employment opportunities.
References
[^1]: Netflix used generative AI effects in a TV show to save money and time. (2025). The Tab. Retrieved October 18, 2025.
[^2]: Netflix uses AI effects for the first time to save money. (2025). UNN. Retrieved October 18, 2025.
[^3]: Is Anything Real? Netflix Is Now Using Generative AI Tools for Visual Effects. (2025). PCMag. Retrieved October 18, 2025.
Keywords: Netflix, AI, Visual Effects, The Eternaut, Entertainment Industry, Generative AI, Cost Efficiency, Job Security, Ted Sarandos.
