Netflix deploys AI for first time in original production to create visual effects for “The Eternauts”

Netflix has used generative artificial intelligence to create visual effects on screen for the first time in one of its original productions, according to co-CEO Ted Sarandos. The streaming giant deployed AI technology to generate a building collapse scene in the Argentine science fiction series “The Eternauts,” marking a significant milestone in the entertainment industry’s adoption of AI-generated content.

What you should know: Netflix’s use of generative AI represents the first time the company has incorporated AI-created visual effects into final footage for an original series or film.

• The AI technology was used specifically to create a scene showing a building collapsing in “The Eternauts,” an Argentine science fiction show.
• The generative AI helped the production team complete the sequence 10 times faster than traditional special effects tools would have allowed.
• Sarandos emphasized that the cost of creating the scene using conventional methods “just wouldn’t have been feasible for a show in that budget.”

Why this matters: The move demonstrates how AI is enabling smaller-budget productions to access advanced visual effects previously reserved for high-budget Hollywood films.

• Sarandos described AI as an “incredible opportunity to help creators make films and series better, not just cheaper.”
• The technology allows productions with limited resources to compete with larger studios in terms of visual spectacle.
• This development comes amid ongoing industry debates about AI’s role in entertainment and its potential impact on traditional jobs.

Financial context: Netflix reported strong quarterly performance alongside the AI announcement, with revenue reaching $11.08 billion for the three months ending in June.

• The 16% year-over-year revenue increase exceeded expectations, driven partly by the success of “Squid Game” season three.
• The final season of the South Korean thriller has attracted 122 million views so far.

Industry tensions: The use of AI in entertainment remains controversial, particularly following the 2023 Hollywood strikes.

• AI was among the key concerns raised during the three-month Screen Actors Guild–American Federation of Television and Radio Artists walkout.
• The union called for tighter regulation of AI use in film and television production.
• Entertainment industry workers have expressed fears that AI could replace human jobs in creative fields.

What they’re saying: Netflix’s co-CEO praised the results of the AI-generated sequence in “The Eternauts.”

• “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,” Sarandos said.