Here's a comprehensive summary of the BBC News report: ## Netflix Utilizes Generative AI for Visual Effects in Original Series **Report Provider:** BBC News **Author:** Osmond Chia **Published:** July 18, 2025 (reporting on events up to the end of June 2025) **Topic:** Artificial Intelligence (AI) in the Entertainment Industry ### Key Findings and Conclusions: * **First-Time Use of Generative AI:** Netflix has, for the first time, used visual effects created by generative artificial intelligence (AI) on screen in one of its original TV shows, "The Eternauts." * **AI as a Creative Tool:** Netflix co-CEO Ted Sarandos highlighted AI's potential to "help creators make films and series better, not just cheaper," emphasizing its role in enhancing creativity. * **Cost and Efficiency Benefits:** The generative AI used in "The Eternauts" allowed a specific scene (a building collapsing) to be completed **10 times faster** than with traditional special effects. This efficiency made the visual effects feasible for a show with a smaller budget, stating, "The cost of it would just wouldn’t have been feasible for a show in that budget." * **Financial Performance Boost:** Netflix reported revenue of **$11.08 billion (£8.25 billion)** for the three months ending June 2025, a **16% increase** compared to the same period last year. This better-than-expected performance was attributed, in part, to the success of "Squid Game," which has garnered **122 million views**. ### Notable Trends and Changes: * **AI Integration in Production:** This marks a significant step in integrating generative AI into the actual production process of mainstream streaming content. * **Democratization of Advanced VFX:** AI is enabling productions with smaller budgets to access advanced visual effects that were previously cost-prohibitive. ### Risks and Concerns: * **Job Displacement Fears:** The use of generative AI in the entertainment industry is controversial and has raised concerns about AI potentially replacing human workers. * **Call for Regulation:** AI was a major concern during the 2023 Hollywood strike, with the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) union advocating for stricter regulation of AI's use. ### Material Financial Data: * **Revenue (Q2 2025):** $11.08 billion (£8.25 billion) * **Year-over-Year Revenue Growth:** 16% * **"Squid Game" Views:** 122 million ### Critical Statements: * Ted Sarandos: "incredible opportunity to help creators make films and series better, not just cheaper." * Ted Sarandos: "The cost of it would just wouldn’t have been feasible for a show in that budget." * Ted Sarandos: "That sequence actually is the very first [generative] AI final footage to appear on screen in a Netflix original series or film. So the creators were thrilled with the result."
Netflix enlists AI for first time to cut costs and boost creativity
Read original at BBC →Osmond ChiaBusiness reporter, BBC NewsReporting fromSingaporeNetflix says it has used visual effects created by generative artificial intelligence (AI) on screen for the first time in one of its original TV shows.The streaming giant's co-CEO Ted Sarandos said AI, which produces videos and images based on prompts, was used to create a scene of a building collapsing in the Argentine science fiction show, The Eternauts.
He praised the technology as an "incredible opportunity to help creators make films and series better, not just cheaper."The use of generative AI is controversial in the entertainment industry and has sparked fears that it will replace the work of humans. The comments came after the company unveiled revenue of $11.
08bn (£8.25bn) for the three months to the end of June,16% higher than the same time last year.Netflix said the better-than-expected performance was boosted by the success of the third and final series of South Korean thriller Squid Game, which has so far attracted 122 million views.Asked about Netflix's use of AI, Mr Sarandos said the technology has allowed productions with smaller budgets to use advanced visual effects.
The generative AI used in The Eternauts helped its production team to complete a sequence 10 times faster than if they had used traditional special effects tools, he said."The cost of it would just wouldn't have been feasible for a show in that budget.""That sequence actually is the very first [generative] AI final footage to appear on screen in a Netflix original series or film.
So the creators were thrilled with the result," said Mr Sarandos.AI was among the key concerns raised during a Hollywood strike in 2023. During the three-month walkout, the Screen Actors Guild–American Federation of Television and Radio Artists union called for tighter regulation of the use of AI.
