Netflix recently announced major breakthroughs from the deployment of artificial intelligence (AI) across its production operations. This technological advancement represents a pivotal breakthrough in the film and arts sector. Streaming services Earlier this year, the streaming giant launched a new AI-powered search tool, making it easier for users to engage and find content. This new initiative comes on the heels of remarkable viewership numbers. During the first six months of 2025, consumers watched more than 95 billion hours of programming!
It was during this time that non-English titles exploded to the top. Together, they made up one-third of all views on the platform. This shift showcases Netflix’s commitment to diverse storytelling and its global audience’s evolving preferences.
In its quarterly financial report for the second quarter, Netflix disclosed record earnings—$11.08 billion in revenues. This figure makes for a robust 16% increase over FY22. The company’s third quarter profit of $3.13 billion set an all time record for the company. Despite the encroaching competition, this performance underscores its dominant position in the market.
Ted Sarandos, Netflix’s co-CEO, discussed the efficiency AI has introduced into their production pipeline. He explained that at VFX company Hydraulx, they had AI finish a scene tenfold the speed of making it with previous visual effect instruments. What surprised him even more was how much cheaper these AI-generated scenes were.
“We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper. There are AI-powered creator tools. So this is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualization and shot-planning work, and certainly visual effects. It used to be that only big-budget projects would have access to advanced visual effects like de-aging,” – Ted Sarandos
The implementation of AI culminated in a landmark achievement for Netflix, as it showcased “the very first GenAI final footage to appear on screen” in the Argentine show “El Atonata.” This milestone exemplifies the company’s industry-leading creative ambition and innovative mindset to always push the limits of creativity.
In addition, Greg Peters, co-CEO of Netflix, provided more details on the transformative uses of generative AI across the platform. He mentioned that Netflix is employing AI not only in content production but in personalization, search functionalities, and advertising strategies. Company officials said they’d like to roll out interactive ads in the second half of 2025. If successful, this change would dramatically transform the way consumers interact with ad content.
As Netflix takes the next steps in its AI journey, it creates a roadmap for all entertainment production in years—and even decades—to come. These emerging technologies will agnostically open new dimensions to our creative storytelling toolbox. They democratize high-quality visual effects, making them available to a far broader swath of budgets.