Netflix confirms 300 titles utilised generative AI in second-quarter earnings
Co-CEO Ted Sarandos highlights improved output quality and speed, while the company reports $12.56 billion in earnings and addresses viewer engagement metrics.
Netflix has disclosed that approximately 300 titles on its platform have utilised generative artificial intelligence, according to its second-quarter earnings report released on Thursday. The streaming service stated that the technology was deployed primarily during post-production, with co-CEO Ted Sarandos noting that the company is increasingly leveraging these tools to deliver higher quality output more quickly and at a lower cost.
The report provided specific examples of titles that employed AI for complex visual tasks, including Glory, Brasil 70: A Saga do Tri, and The American Experiment. Netflix explained that these productions used the technology to create highly complex sequences, such as enhanced crowds, historical battle sequences, and worldbuilding establishing shots. This disclosure follows previous admissions from Sarandos, who stated last year that AI was used to create a scene in the sci-fi series The Eternaut because the method was faster and cheaper.
Financially, the streaming giant reported earnings of $12.56 billion for the period. The company remains on track to double its advertising revenue to $3 billion. In its letter to shareholders, Netflix also addressed concerns regarding viewer retention for second seasons of its shows, a topic highlighted by a recent Bloomberg report. The service argued that time spent is just one aspect of strong engagement, emphasising that quality and variety also matter.
Netflix highlighted that subscribers watched over 97 billion hours of content, representing a 2 per cent increase year on year. To streamline its reporting, the company announced it would now publish its What We Watched report once per year, rather than twice. This shift comes as Netflix continues to adapt its content strategy to compete with free-to-watch services like YouTube.
The company has been expanding its content types to include video podcasts, TikTok-style clips, and videos from digital media brands such as BuzzFeed. Additionally, earlier this month, The Wall Street Journal reported that Netflix is considering adding always-on channels to its platform. The streaming service has also invested heavily in AI infrastructure, including the acquisition of Ben Affleck’s AI startup and the creation of an AI animation studio. It is currently using an AI-generated voice of Gene Wilder in its new reality show, Wonka’s The Golden Ticket.
