Co-CEO Ted Sarandos reaffirmed that Netflix is focused on streaming and newer media, with no interest in owning legacy media networks.

Netflix is expanding its use of generative AI across production and post-production to boost efficiency, emphasizing that AI is a tool to assist human creativity rather than replace it.

This strategic move comes amid ongoing industry debates and calls from SAG-AFTRA and stars like Bryan Cranston for stricter regulations on unauthorized deepfakes.

Netflix has integrated AI and machine learning into its infrastructure for years, including recommendation algorithms and promotion tech, and is now beta testing a conversational, OpenAI-powered search feature to personalize content discovery.

In its recent earnings report, Netflix posted revenue of $11.51 billion for the third quarter, a 17% increase year-over-year, but missed earnings per share expectations, causing its stock to drop by 7%.

Netflix aims for measurable productivity improvements through AI, such as faster turnaround times, fewer reshoots, and lower VFX costs, all while maintaining creative control and quality.

The company reported its best advertising sales quarter ever, with plans to introduce dozens of new ad formats in 2025, supporting its growth in ad revenue.

The company sees AI as an opportunity to enhance content quality, applying it in pre-visualization, shot planning, and visual effects, and remains optimistic about ongoing AI advancements.

The Hollywood actors' strike in 2023 was partly driven by fears of job losses due to AI, leading SAG-AFTRA to negotiate protections for performers regarding AI usage.

Sarandos addressed industry concerns about AI's rapid development and its potential impact, emphasizing Netflix's 'all in' stance on generative AI.

Netflix promotes responsible AI use, acknowledging concerns around copyright and ethics, and supports legal standards for AI deployment.

Netflix highlighted popular content like the second season of 'Wednesday' and the record-breaking kids' movie 'KPop Demon Hunters,' which is leading to toy and game tie-ins.

Despite enthusiasm, consumer hesitation around AI-generated content underscores the need for transparency, human oversight, and responsible testing to ensure wider acceptance.