Netflix Co-CEO Ted Sarandos says using artificial intelligence isn’t just about saving money—it could actually make movies better.
Speaking during the company’s Q1 earnings call, Sarandos responded to a question about how fears around AI in Hollywood seem to be fading. He pointed to recent comments by renowned Canadian director James Cameron, who suggested AI could slash blockbuster budgets in half. Sarandos agreed there are savings, but said he’s more interested in boosting quality.
“I read the article too about what Jim Cameron said about making movies 50% cheaper,” Sarandos said, according to Deadline. “I remain convinced that there’s an even bigger opportunity to make movies 10% better. So, our talent today is using AI tools to do set references, pre-vis, VFX sequence prep, shot planning, all kinds of things today that kind of make the process better.”
In the past, advanced visual effects like de-aging were only possible for big-budget films. Now, with AI tools, even smaller productions can pull off those same high-end effects on screen, said Sarandos (actors also no longer need to get aged with make up and other effects too).
Sarandos gave a comparison to show how AI is changing film production. He mentioned The Irishman from 2019, which used expensive and complex tech to make actors look younger. Now, in the 2024 film Pedro Páramo, directed by Irishman cinematographer Rodrigo Prieto, similar effects were done using AI—at a much lower cost. The entire movie cost about the same as the visual effects budget on The Irishman, Sarandos said.
Netflix beat Wall Street expectations in Q1, which saw net income increase 24% year over year to $2.9 billion. As for those subscriber numbers we all loved to keep track of? The company will no longer report them during quarterly earnings.
What do you think about Netflix and other movie studios using AI for movies? If viewers can’t tell the difference and the movie is actually good, then I’m all for it.
