Netflix Chief Backs Generative AI: Artist Concerns Ahead

Whether welcomed or not, the AI wave has officially hit Hollywood, and Netflix is choosing to ride the wave rather than resist it.

After announcing impressive earnings for the second quarter, co-CEO Ted Sarandos unveiled Netflix’s strategic integration of AI moving forward. While the focus on cost savings is significant, Sarandos is optimistic that AI will enhance the overall quality of the films and series Netflix produces.

“We firmly believe AI is a tremendous opportunity that can help creators elevate their filmmaking, not just reduce costs,” Sarandos conveyed to financial analysts, as noted by The Hollywood Reporter. “The tools available are empowering real people to do authentic work. Our creators are already experiencing advantages in areas like pre-visualization and shot planning, especially in visual effects.”

Netflix has already made strides in this direction. Earlier this year, the platform debuted The Eternaut, an Argentine sci-fi narrative inspired by the comic work of Héctor Germán Oesterheld and Francisco Solano López. The storyline unfolds with a toxic snowfall that decimates the population, leaving the survivors to discover that this deadly storm is merely the opening act of an alien invasion.

In a pioneering move, Argentinian visual effects artists collaborated with Netflix using GenAI to portray a building collapse in Buenos Aires for one of the episodes. This marked the first instance of an AI-generated sequence featured in a Netflix original project. Sarandos suggests that this is likely the beginning of more AI integrations in their productions.

“Thanks to AI-driven tools, the team achieved outstanding results in a fraction of the time, completing that visual effects sequence ten times faster than traditional methods would have allowed,” Sarandos stated.

While Netflix thrives with its AI initiatives, other studios are facing challenges. Disney and Universal have taken legal action against the GenAI platform Midjourney, accusing it of being a “quintessential copyright free-rider” and contributing to widespread plagiarism.

Concerns surrounding copyright and automation weigh heavily on many creators when discussing AI. Nadeem Sarwar, a tech and science journalist at Digital Trends, argues that Netflix’s approach may ultimately harm creators rather than help them.

“The focus on efficiency signals Netflix’s effort to hasten the creative process, but this undermines the meticulous work that artists typically invest in their craft,” Sarwar noted. “It primarily benefits Netflix, not the talent.”

With technological advancements, AI is unlikely to fade from the scene anytime soon. The potential implications for artists looms large, fostering unease about the future.

“The trend was inevitable,” Sarwar commented. “Even with the backlash Marvel faced, we hoped that Netflix and other studios would learn from those missteps. Clearly, that’s not happening.”