Netflix uses generative AI VFX in a show for the first time, as CEO says ‘the cost just wouldn’t have been feasible for a show on that budget’

• Netflix's co-CEO Ted Sarandos announced the use of generative AI in an original production for the first time
• The Eternaut, an Argentine sci-fi show, used generative artificial intelligence to create VFX of a building collapsing
• The company says it is "thrilled with the results"

Netflix used AI-generated visual effects for the first time in a TV show or movie this year, and co-CEO Ted Sarandos is pretty pleased with the result.

Speaking to investors on Thursday (July 18), Sarandos revealed Argentinian sci-fi show, The Eternaut, is the first Netflix production to use AI to generate a VFX (visual effects) sequence.

He said: "The creators were thrilled with the result. We were thrilled with the result," he said. "And more importantly, the audience was thrilled with the result. So, I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting."

The scene in question shows a building collapse in Buenos Aires after coming into contact with toxic snowfall, and according to Sarandos, given the budget of the show, the scale of the effects needed to pull off the scene wouldn't have been possible without the use of AI.

In fact, Sarandos even confirmed that using AI was not only a cost-saver, but incredibly efficient too. "That VFX sequence was completed 10 times faster than it could have been completed with visual, traditional VFX tools and workflows," he said.

Considering just how happy Netflix's head honcho and the creators behind The Eternaut are with the results, the Argentinian-made TV series could be the pioneer in AI-generated Netflix effects, opening up opportunities for other productions to follow suit.

Just the beginning

Hollywood's disdain towards AI couldn't be more evident. After all, the technology was a huge point of contention in the Hollywood actors' and writers' strikes that plagued the entertainment industry in 2023.

Now, two years on, we're starting to see AI find its feet in the world of TV and movie production, and despite the negative connotations of the word, it might end up being a good thing for creators working on a smaller budget.

Sarandos said: "This is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualisation and shot planning work, and certainly visual effects. I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting.”

Netflix reported a successful quarter, with over $11 billion in revenue, up nearly 20% compared to the previous year. I might be skeptical, but I'd expect this trial of using AI to generate scenes could spawn into a bigger beast if the profit margins are high enough to ride out any backlash.

Using AI monitored by the creators of a show for a scene is one thing, but at what point does it cross the line? And when it does, will companies like Netflix scale back or go full steam ahead, implementing AI into all the best TV shows and movies?

You might also like

• I watched Brick on Netflix so you don’t have to – here’s a far superior sci-fi thriller I recommend streaming instead
• Stranger Things first aired 9 years ago today but who cares? Netflix has made us wait too long for season 5
• Squid Game: The Challenge season 3 is a win for Netflix, but one unhinged game from the K-drama can’t be replicated