
TL;DR:
- Netflix has begun using generative AI (GenAI) in its original productions.
- The first GenAI-assisted footage appeared in the Argentine series El Atonata.
- AI helped reduce visual effects production time and costs by over 90%.
- Netflix sees GenAI as a tool to improve quality, not replace creators.
- AI is also being used in search, personalization, and ads across Netflix.
- Q2 2025 revenue reached $11.08 billion, with 95B hours watched, 1/3 from non-English titles.
Netflix Brings GenAI to On-Screen Production
Netflix has officially entered the AI-assisted production era, using generative AI tools in its latest shows and films. During the company’s Q2 2025 earnings call, co-CEO Ted Sarandos revealed that a scene from the Argentine series El Atonata marks the first time GenAI-generated final footage has appeared on screen.
The scene, which depicts a building collapse, was created by Netflix’s in-house production team in collaboration with external producers using AI-driven tools. According to Sarandos, the process was 10 times faster than traditional visual effects and significantly more cost-effective.
“AI represents an incredible opportunity to help creators make films and series better, not just cheaper,” said Sarandos.
He emphasized that AI is enhancing creative workflows — including pre-visualization, shot planning, and visual effects — rather than replacing artists. These tools are leveling the playing field, allowing even non-blockbuster productions to access sophisticated visual effects like de-aging, which were previously reserved for high-budget projects.
AI-Powered Innovation Beyond Visual Effects
Sarandos’ comments were echoed by co-CEO Greg Peters, who explained that Netflix’s use of AI extends far beyond content production. The company is deploying GenAI in personalized recommendations, search functions, and advertising technology.
Netflix plans to roll out interactive AI-powered ads in the second half of 2025. This follows the company’s earlier rollout of an AI-enhanced search interface, improving the way users discover content across languages and genres.
Q2 Financials Show AI-Backed Growth
In its Q2 2025 financial report, Netflix posted revenue of $11.08 billion, representing a 16% year-over-year increase. Net profit reached $3.13 billion.
The platform reported that viewers watched over 95 billion hours of content in the first half of 2025. Notably, non-English titles made up one-third of all views, further affirming the platform’s global content strategy and AI-driven localization tools.
The Data
Metric | Value | Source |
Q2 2025 Revenue | $11.08 billion | Netflix Shareholder Letter |
Q2 2025 Profit | $3.13 billion | Netflix Shareholder Letter |
Total Watch Hours (H1 2025) | 95 billion hours | Netflix Earnings Call |
Share of Non-English Content Viewed | 33% | Netflix Earnings Call |