Netflix adopts generative AI for the first time, (The Eternaut) becomes the first application work.
Netflix announced on Thursday that it has for the first time used generative artificial intelligence technology in an original series, with the Argentine sci-fi series (The Eternaut) becoming the first work on the streaming platform to utilize AI-generated images. Co-CEO Ted Sarandos revealed in a financial report conference call that the production team used AI technology to create a scene of a building collapsing in Buenos Aires, which increased the speed of visual effects production by ten times while significantly reducing production costs.
(The Eternaut) is adapted from a popular sci-fi comic, depicting a doomsday scenario where toxic snowflakes fall, resulting in millions of deaths. Sarandos stated that if traditional visual effects tools were used, such effect scenes would be completely unfeasible within the budget of the show. Netflix's second-quarter financial report showed a revenue of $11 billion, a 16% increase compared to the same period last year, with profits soaring from $2.1 billion to $3.1 billion, and the success of the final season of the Korean drama (Squid Game) was a major driver of revenue growth.
AI technology innovates visual effects, allowing small budgets to present large production effects.
Sarandos pointed out that AI technology allows productions with smaller budgets to use advanced visual effects. He emphasized, "Creators are excited about the results, we are excited about the results, and most importantly, the audience is excited about the results."
Davier Yoon, co-founder of Singapore animation studio CraveFX, stated that Netflix's adoption of generative AI is not surprising, "AI indeed opens doors for smaller studios, allowing them to present visual effects like those of big budgets."
Image source: Netflix Argentina sci-fi series (The Eternaut) still
This is not the first time Netflix has utilized AI technology. Sarandos previously mentioned using AI for age-reversal effects in the movie (Pedro Páramo), with the entire film's budget approximately equal to the visual effects costs of Martin Scorsese's (The Irishman). Another co-CEO, Greg Peters, revealed that the company is testing a new tool that allows viewers to request content recommendations through voice commands.
Industry controversies continue, balancing job opportunities with technological innovation challenges.
Although Netflix expressed satisfaction with the results of AI applications, there are still controversies regarding generative AI in the entertainment industry. During the dual strike of Hollywood writers and actors in 2023, the use of AI permissions became a core point of contention, with concerns that this technology might threaten human job opportunities. Movie mogul Tyler Perry paused an $800 million studio expansion plan due to concerns about the impact of AI technology development on employment.
A report from CVL Economics last year warned that generative AI could have a "significant impact" on 204,000 film and television job opportunities by 2027, with entry-level positions being particularly affected. Disney was also criticized by fans in 2023 for using AI art in the title sequence of the Marvel series (Secret Invasion) and was mocked for suggesting it should be renamed 'AI Invasion.'
Image source: (Forbes) Disney was also criticized by fans in 2023 for using AI art in the title sequence of the Marvel series (Secret Invasion).
As audience demand for explosive scenes and superhero movies continues to grow, visual effects have become an industry in Hollywood that could be significantly altered by AI. Netflix warned in its annual documents that if competitors use AI tools more effectively to gain an advantage, it could negatively impact its business. Market research firm Forrester analysts believe that Netflix's better-than-expected performance is a result of high-quality content, increased pricing, and advertising momentum working together.
'Netflix introduces AI for the first time! Helping The Eternaut series create grand scenes, small budgets can also achieve great productions.' This article was first published in 'Crypto City.'