Netflix has used generative AI in a TV show for the first time. The Argentinian sci-fi series El Eternauta features AI-powered VFX to show a building collapse in Buenos Aires.
Co-CEO Ted Sarandos said the AI tools helped create the sequence 10 times faster than traditional methods. The result cut costs significantly, making the big-budget production feasible on a lower budget.
Sarandos emphasized that AI helps creators, not replaces them: 
“We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper.”
“Using AI-powered tools, they were able to achieve an amazing result with remarkable speed and, in fact, that VFX sequence was completed 10 times faster than it could have been completed with traditional VFX tools and workflows.”
“The cost of [the special effects without AI] just wouldn’t have been feasible for a show in that budget.”
The move comes amid industry concerns about AI replacing production and VFX jobs. Sarandos pushed back:
“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 $11 billion revenue in Q2 2024, up 16% year-over-year, boosted by Squid Game season three and a growing ad business expected to double this year.
Mike Proulx, VP of research at Forrester, said Netflix’s success comes from content, pricing, and advertising momentum hitting at once. The company says its ad tech rollout is largely complete.
