Rudy Lai
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AI @ Netflix

Streaming leader, original content
Industry
Last updated
July 3, 2025 at 10:44 AM

Summary

  • Netflix has significantly integrated AI technologies by 2025, especially generative AI, to enhance content creation and user experience, as exemplified by the use of AI-driven visual effects in the Argentinian series 'El Eternauta', enabling sequences to be completed ten times faster and reducing production costs.
  • AI is deeply embedded in Netflix’s recommendation algorithms, streaming quality optimization, subscriber forecasting, and is now expanding into new generative AI applications, including an internal developer platform for generative AI and an AI-based search engine trial in 2025.
  • Ted Sarandos, Netflix co-CEO, has highlighted AI's role chiefly as a creativity enabler rather than purely a cost-cutting tool, linking recent financial performance with a 16% revenue increase in Q2 2025 ($11B) partly attributed to AI-driven efficiencies.

VIBE METER

More AI announcements = more VIBE
Q1 23Q2 23Q3 23Q4 23Q1 24Q2 24Q3 24Q4 24Q1 25Q2 25Q3 25πŸ”₯πŸ”₯πŸ”₯πŸ”₯

5 AI Use Cases at Netflix

Visual Effects
2025
Traditional
Generative
Agentic
Outcome
Costs
Netflix applies generative AI to create visual effects (VFX) sequences in productions, such as the show 'El Eternauta', allowing sequences to be completed up to ten times faster and significantly reducing production costs. [1][2][3]
Search Enhancement
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Netflix is testing a new AI-driven search engine enabling subscribers to more easily find titles by leveraging AI to better understand user queries and preferences. [1]
Streaming Optimization
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Netflix utilizes AI to dynamically adjust video quality based on user bandwidth and network conditions, ensuring smooth streaming and optimal viewer experience. [1]
Subscriber Forecasting
2024
Traditional
Generative
Agentic
Outcome
Risk
AI models predict subscriber counts to help Netflix optimize marketing, content acquisition, and network resources aligning with expected demand. [1]
Content Recommendation
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Netflix uses AI algorithms to analyze vast amounts of user viewing histories, preferences, and interaction patterns to recommend personalized movies and shows to subscribers, improving engagement and retention. [1][2]

Timeline

2025 Q3

5 updates

Netflix deploys generative AI in content production for the first time in 'El Eternauta', enabling 10x faster VFX completion and significant cost savings; co-CEO Ted Sarandos emphasizes AI's role in expanding creative possibilities, supporting a 16% revenue increase to $11B in Q2 2025.

2025 Q2

1 updates

Netflix tests a new AI search engine to improve show and movie recommendations, reflecting ongoing investment in AI tools that enhance subscriber content discovery experience.

2025 Q1

1 updates

Netflix's application of machine learning for personalized recommendations was cited as a case study for leveraging AI beyond entertainment, including in other sectors.

2024 Q4

1 updates

Netflix initiates building an internal generative AI developer platform and increases hiring to incorporate large language models (LLMs) and generative AI across the organization.

2024 Q3

3 updates

Netflix expands AI utilization in streaming quality adaptation, subscriber number prediction, and extensive user data analytics to optimize experience and performance.

2024 Q2: no updates

2024 Q1

1 updates

Netflix continues to apply AI algorithms for personalized content recommendations based on user viewing history, maintaining its leadership in AI-driven streaming optimization.

2023 Q4: no updates

2023 Q3: no updates

2023 Q2: no updates

2023 Q1

1 updates

Coverage highlighted popular AI-focused Netflix series and movies such as 'Black Mirror' and 'The Social Dilemma,' advancing Netflix's market position in AI-themed entertainment.

2022 Q4: no updates

2022 Q3: no updates

2022 Q2: no updates

2022 Q1

1 updates

Netflix featured AI-themed movies like 'AI Love You' and 'Mother/Android,' reflecting early consumer interest in AI topics within its content library.