Netflix Co-CEO: AI Can Make Movies 10% Better, Not Just Cheaper

Netflix co-CEO Ted Sarandos recently highlighted the potential benefits of artificial intelligence (AI) in the film industry, suggesting that AI can not only make movies more cost-efficient but also enhance their overall quality. Speaking during Netflix's Q1 earnings call, Sarandos addressed the recent excitement around AI, responding to remarks made by "Avatar" director James Cameron about AI potentially reducing movie production costs by 50%. While Cameron's focus was on cost reduction, particularly for films with extensive visual effects (VFX) and computer-generated imagery (CGI), Sarandos sees a broader opportunity. "I remain convinced that there's an even bigger opportunity if you can make movies 10% better," he said. Sarandos emphasized that Netflix creators are already leveraging AI tools to refine various aspects of the filmmaking process, such as set references, pre-visualization (pre-vis), VFX sequence preparation, and shop planning. These tools are making the process more efficient and cost-effective, but more importantly, they are enhancing the final product. One significant advantage of AI, according to Sarandos, is that it democratizes advanced visual effects. Traditionally, sophisticated VFX and de-aging techniques were reserved for big-budget projects due to their high costs. However, AI is changing this landscape. "Today you can use these AI-powered tools to enable smaller budget projects to have access to big VFX on screen," he explained. This accessibility means that smaller films can now incorporate high-quality visual effects that were previously out of reach. To illustrate the impact of AI on visual effects, Sarandos cited the work of cinematographer Rodrigo Prieto. During the production of "The Irishman" just five years ago, de-aging technology was both expensive and complex, creating significant challenges on set. However, Prieto recently used AI-powered tools to achieve similar de-aging effects at a fraction of the cost. Sarandos noted that the entire budget of the new film was comparable to the VFX costs of "The Irishman." This example underscores AI's potential to reduce expenses and improve the filmmaking process. Despite these benefits, AI remains a contentious issue in Hollywood. The 2023 joint strike of the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the Writers Guild of America (WGA) was partly fueled by concerns over job displacement and the potential misuse of AI in creative roles. The strike highlighted the need for industry regulations to ensure that AI is used ethically and does not lead to significant job losses. Since the resumption of production, AI has continued to advance, but its applications in the film industry remain largely confined to the VFX department. Sarandos stressed that Netflix's approach is to provide creators with better tools to enhance their work rather than replace them. "Same creator using new tools — new better tools — to do something that would have been impossible to do just five years ago," he said. "That's incredibly exciting." This philosophy aligns with Netflix's broader goal of improving both the member and creator experience. In summary, Sarandos believes that AI can significantly enhance the quality of movies by making advanced visual effects more accessible and cost-effective. Netflix is committed to integrating AI into its creative processes in a way that complements and empowers human creators, rather than displacing them. This approach reflects a more nuanced and optimistic view of AI's role in the film industry. Industry insiders generally agree with Sarandos's perspective, recognizing that while AI may pose challenges, it also offers substantial opportunities for innovation and cost reduction. Companies like Netflix, with their extensive resources and commitment to technological advancement, are well-positioned to explore and implement these tools effectively. However, the ongoing debate over the ethical use of AI in creative roles underscores the need for careful and balanced integration.