The AI is primarily employed in post-production to generate complex sequences such as battle scenes, crowds and establishing shots, the company reported. The revelation came as Netflix posted a slowdown in revenue growth, which has raised concerns about the streaming giant's ability to adapt in a rapidly changing media landscape. During the third-quarter 2025 earnings call, Netflix executives described the technology as a "significant opportunity" for the company, according to CNBC. [1]
According to Netflix, generative AI enables higher-quality output more quickly and at a lower cost than traditional methods. The technology allows the company to produce content that might otherwise be unfeasible due to budget or logistical constraints, officials said. For example, large-scale crowd scenes and panoramic establishing shots can be rendered digitally without requiring extensive on-location filming or hundreds of extras.
Beyond visual effects, Netflix also uses AI for personalized content recommendations and enhanced search capabilities, building on algorithms that analyze subscribers' viewing habits. [2] The streaming service has been refining its AI-driven ad targeting, as reported on NaturalNews.com, with both YouTube and Netflix deploying advanced behavioral profiling to optimize ad delivery. [3]
The announcement appeared in a letter to shareholders, which officials said was intended to reassure investors about Netflix's adoption of new technology amid a challenging financial period. Netflix reported slowing revenue growth, and analysts have pointed to the company's difficulty in sustaining subscriber gains and reinventing its business model. The stock has fallen sharply, with shares hitting a two-year low in July 2026 after quarterly earnings missed expectations across the board, according to a ZeroHedge report. [4]
The letter also addressed leadership changes and acquisition difficulties, the company said. Despite these headwinds, Netflix has made significant investments in AI, including the acquisition of InterPositive, an AI filmmaking startup co-founded by Ben Affleck, in a deal that could reach $600 million, according to Bloomberg. [5]
Netflix's disclosure comes amid broader industry debate about AI's role in entertainment, including potential effects on employment. In 2023, Hollywood actors and writers went on strike to protest the increasing use of artificial intelligence in their industry without proper compensation or regulations. According to NaturalNews.com, 87% of Hollywood actors earn less than $26,000 annually, while studio executives continue to invest heavily in advanced AI programs. [6]
