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Generative AI Is More Than Just A Cost Saver For Netflix – Ted Sarandos

Folami David by Folami David
July 21, 2025
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Netflix has revealed that it made use of generative AI technology to create a visual effects (VFX) sequence in “The Eternaut,” a Netflix Original series from Argentina that premiered in April 2025.

The streaming giant recently made the announcement via its latest earnings call.

The milestone is a major achievement for the brand as it is the first time generative AI-generated footage has been featured in a final cut of a Netflix original film or series.

According to Ted Sarandos, Co-CEO, Netflix, the AI was used to create a complex shot that depicted a building collapsing in Buenos Aires – a scene that would have been very costly and time-consuming to create using regular VFX methods.

Ted stated that Netflix decided to use AI-powered tools to generate the sequence, rather than outsource the task to a visual effects studio.

“Using AI-powered tools, they were able to achieve an amazing result with remarkable speed.

In fact, that VFX sequence was completed 10 times faster than it could have been with traditional VFX tools and workflows,” he said.

Ted, who was involved in the series’ budgeting, stressed that the scene would have been financially impossible without AI. He insisted that the decision to use generative AI was not only innovative, but it also proves that Netflix will continue to provide futuristic solutions for current production problems.

However, the decision remains controversial in some quarters. The entertainment industry has not stopped emphasizing the implications of AI in creative work, with several professionals coming out to express concern about ethical issues and the security of their jobs.

The latest labour strikes, including the SAG-AFTRA video game strike, have focused on demands for better protections against the use of AI in production.

The 2024 Oscar-nominated movie “The Brutalist” was also criticized for incorporating AI tools to aid its creation.

Another angle fuelling the debate against the use of AI is the ongoing legal question of whether generative AI models have been trained on copyrighted material without permission, a problem that artists and right holders haven’t stopped ranting about.

Netflix’s use of AI is not restricted to content creation. The streaming company is currently exploring AI-generated advertising for its ad-supported subscription tier and is reportedly working on a fresh AI-powered search feature using OpenAI models.

While the company’s recent strides are in line with Netflix’s broader investment in Artificial Intelligence, they are also normalizing the use of tech that several creatives remain wary of.

“The Eternaut” has automatically become a test case for AI in mainstream entertainment, highlighting the increasing tension between tech development and the preservation of real human artistry in film and television.

Folami David writes on trends and pop culture. He is a creative writer, and he is passionate about music and football. 
Folami David

Folami David is a dynamic journalist who views the world through an analytical lens, translating complex narratives across multiple industries into compelling stories. With an insatiable appetite for information and a keen eye for emerging trends, Folami specializes in uncovering the interconnections between technology, business, culture, and society.

Tags: Netflix

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