Netflix reveals that one of its shows used generative AI to cut costs

Netflix co-CEO Ted Sarandos has revealed that the streaming platform used generative AI to create visual effects in its Argentine original series, The Eternaut.

Responding to questions during Netflix’s Q2 2025 earnings call, Sarandos said Netflix’s creative team partnered with the creators of the original series to deliver AI-powered visual effects that would have otherwise been outside the scope of the show’s budget.

He said the creators of The Eternaut series wanted to include a shot of a building collapsing in Buenos Aires, and the Netflix eyeline team partnered with them to use generative AI to achieve the required effect at a fraction of the cost that would be incurred by traditional workflows.

Not only did using generative AI tools cut the costs associated with creating the visual effects required, it also completed the sequence much faster than would have been possible with standard workflows.

“In fact, that VFX sequence was completed 10-times faster than it could have been completed with traditional visual effects tools and workflows. Also, the cost of it wouldn’t have been feasible for a show on that budget,” Sarandos said.

“That sequence is the very first generative AI final footage to appear on screen in a Netflix Original series or film.”

Sarandos added that Netflix creators are already seeing the benefits of generative AI tools in pre-visualisation and shot planning work, although one of the most impressive cost and speed efficiency gains are related to visual effects.

“It used to be that only big-budget projects would have access to advanced visual effects like de-ageing… that’s just no longer the case.”

AI offers an incredible opportunity for creators to make films and series not only at a lower cost but also of better quality, Sarandos said. He noted that real people continue to create visual effects and other work, just using better tools that leverage generative AI.

“I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting,” Sarandos said.

Now read: UK to cut energy access costs for businesses by up to 90%