Netflix has deployed generative AI to create its first fully AI‑generated visual effects sequence, marking a pivotal moment in entertainment technology. In the Argentine sci-fi series El Eternauta, a collapsing Buenos Aires building was brought to life ten times faster and at a significantly lower cost than traditional VFX would permit. This early innovation is reshaping how streaming platforms approach storytelling and production.
By embedding GenAI into its Eyeline Studios pipeline, Netflix is demonstrating that advanced visual effects are no longer confined to blockbuster budgets. With Co‑CEO Ted Sarandos affirming that AI delivers “better, not just cheaper” creative output, this marks a strategic leap for the industry. The implications reach far beyond a single scene: it signals a shift towards scalable, cost-efficient production across diverse content types.
Yet technology adoption does not come without controversy. The Hollywood strikes of 2023 showcased worries about AI displacing skilled labour, and Netflix’s strategy comes with a promise: AI will empower creatives rather than replace them. As Sarandos emphasises, these tools support pre‑production planning, enhance efficiency, and open possibilities for storytellers to explore vivid imagery that may have previously been cost‑prohibitive.
Looking ahead, Netflix intends to leverage GenAI within its user interface and advertising model. Co‑CEO Greg Peters shared ideas ranging from voice‑activated content searches, such as “find me an ’80s psychological thriller”, to AI‑powered ad creation tailored to viewer interests. This reflects a broader strategy in global tech: using AI not just behind the scenes, but as an interactive tool for audiences and advertisers.
Netflix’s move sets a compelling precedent for tech‑led media innovation. It underscores how GenAI can enhance creative flexibility, unlock production agility, and transform viewer experiences. As the dust settles on El Eternauta, the entertainment sector stands at a crossroads: embrace AI as a partner in creativity, or risk being left behind.
