Netflix Boss Ted Sarandos Says AI Will Help Make Shows and Movies Better, Not Just Cheaper

Netflix co-CEO Ted Sarandos recently shared his thoughts on artificial intelligence and how it’s changing the way movies and TV shows are made. Speaking to financial analysts after Netflix reported its second-quarter results, Sarandos said that AI isn’t just about saving money, it’s about helping creators make better stories.

“We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper,” Sarandos said. According to him, AI is now part of real filmmaking work. It’s being used in tasks like planning shots and creating visual effects, making it easier for creators to do their jobs. “So this is real people doing real work with better tools,” he explained.

Sarandos also talked about how AI is being used on projects that don’t have huge budgets. One example he gave was El Eternauta, an Argentinian sci-fi series about survivors of a toxic snowfall. For that show, Netflix worked with local visual effects artists to create scenes using AI-powered tools.

Sarandos said that in this series, Netflix showed its first-ever AI-generated footage—a scene where a building collapses in Buenos Aires.

He pointed out how AI helped get the job done quickly. “Using AI-powered tools, they were able to achieve an amazing result with remarkable speed and, in fact, that VFX sequence was completed ten times faster than it could have been completed with traditional VFX tools and work flows,” Sarandos said. Thanks to AI, the series was able to include high-quality visual effects even though it was made with a smaller budget by a fully Argentine cast and crew.

Sarandos said everyone involved was happy with how it turned out. “The creators were thrilled with the result. We were thrilled with the result, and more importantly the audience was thrilled with the result,” he told analysts. He believes AI tools are expanding what’s possible in filmmaking and giving storytellers more ways to be creative. “These tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting,” he said.

While Sarandos focused on the positives of AI in production, there are also concerns in the industry. AI can speed up work and cut costs, but some fear that it could replace human jobs or make content feel less personal. Others argue that overusing AI might make films look too similar or predictable.

On the other hand, using AI to handle basic tasks could free up writers and directors to focus on more creative work. It might also help smaller teams with lower budgets compete with larger studios by making special effects and complex shots easier and cheaper to produce.

For now, Netflix sees AI as a tool that helps people, not replaces them. Whether that holds true as AI continues to evolve remains to be seen. But Sarandos is confident that AI’s main role in Netflix productions will be to support creators and improve what viewers see on screen.

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