With more and more companies experimenting with generative AI, Netflix seems more than willing to hop on board out of a stated belief that it will help creators "tell better stories." But audiences, the company says, won't know the difference.
Today, during an earnings call, its co-CEOs gave lengthy responses to a question about the potential for generative AI to impact content creation, with Ted Sarandos in particular remarking that audiences "don't much care" about either budgets for film and TV, or even the technology used to make them.
Sarandos also said that generative AI was "a great way for creators to tell better stories," and compared its introduction into production to the transition of animation from hand-drawn to CG. "Animation didn't get cheaper, it got better in the move from hand-drawn to CG animation, and more people work in animation today than ever in history," he said. "So I'm pretty sure there's a better business and a bigger business in making content 10% better than there is in making it 50% cheaper."
We've included the full question and responses below for context:
Sarandos' and Peters' comments come at a critical time for discussion around the use of generative AI in production. Just last year, companies including Netflix Japan came under fire for use of generative AI to replace animators. In our reporting, many animators shared with IGN their fears of generative AI making their jobs obsolete, or of their work being used without permission to train AI models that would then generate lookalikes for major studios. While those we spoke to acknowledged there were likely ways to use AI and AI tools to support human labor without replacing it, the risks for most outweighed the benefits.
Netflix posted Q2 earnings today with a year-over-year gain of 8 million subscribers and net revenue up 17%. In its report, the company additionally offered an explanation for why it refuses to bundle its service with other streaming services - it simply doesn't need to.
Rebekah Valentine is a senior reporter for IGN. Got a story tip? Send it to rvalentine@ign.com.
