While some creators are happy to see the growing capabilities of generative AI products like ChatGPT and Gemini, others are opposed to using AI tech, afraid that the AI could replace them. The movie industry is the best example of that. There’s concern that AI might take over jobs or alter performances, especially now that it’s more sophisticated than ever.
Products like Google’s Veo 3 can create lifelike video sequences that include dialogue and sound. With enough money and time, you could use such tools to make a full movie without hiring real actors or a production team.
Veo 3 isn’t the only advanced AI video generation tool out there, but it’s a good example of what’s possible today. And Google’s AI tech has already been used in at least one movie. Google said so a few months ago.
Fast-forward to mid-July, and Netflix confirmed that it used unnamed generative AI tools to create special effects for a widely acclaimed new TV show that became a monster hit earlier this year. The revelation came during Netflix’s quarterly earnings report, where the streamer reported a 16% rise in revenue for the June quarter.
While I’m not opposed to studios and streamers using AI to improve their projects, I’d want to know about it beforehand. The use of AI might influence my decision to watch a movie or TV show. I can only wonder how disclosing that AI was used for special effects in The Eternauts would have impacted its success.
AI cutting costs while Netflix profits
Netflix co-CEO Ted Sarandos confirmed to analysts on Thursday that the streamer used AI for the first time in a TV show production.
“We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper,” the exec said, per The Hollywood Reporter. “So this is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualization and shot planning work, and certainly visual effects.”
For The Eternauts, Netflix and the Argentinean VFX artists used AI footage to show a building collapse in Buenos Aires.
“Using AI-powered tools, they were able to achieve an amazing result with remarkable speed and, in fact, that VFX sequence was completed ten times faster than it could have been done with traditional VFX tools and workflows,” Sarandos said. “The creators were thrilled with the result. We were thrilled with the result, and more importantly, the audience was thrilled with the result. So I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting.”
The Eternauts was made entirely by an Argentine team, from cast to crew. They had a lower budget than a typical Hollywood production, THR notes. That’s one reason to use AI. It cuts costs and improves VFX quality.
“The cost of it would just not have been feasible for a show in that budget,” Sarandos also said of that scene, per BBC.
But I’ll point out that Netflix announced it beat Wall Street estimates with its June 2025 earnings, the first full quarter since announcing new price hikes. Those hikes contributed to the higher revenue and profit.
I’ve always defended price hikes from streamers, as long as a good chunk of that money goes to creators. With that in mind, it’s not great to hear Netflix disclosing the use of AI to make an original TV show, a cost-cutting measure in itself, after that project became a massive hit.
People loved The Eternaut’s visuals
The Eternaut is a dystopian drama that has been likened to The Walking Dead and The Last of Us. It was Netflix’s #6 most-watched TV title in the US in mid-May. It made the Netflix Top 10 in 87 countries. Here’s how our own Andy Meek described The Eternaut’s visual effects at the time:
As a consequence of all that work, the visuals alone are a marvel. The Eternaut, which Netflix quickly renewed for a second season, is filled with shots of desolate cityscapes buried in snow, streaked with the eerie blue glow of alien light; close-ups of frostbitten faces stiff with grief and resolve; and scenes of defiance in candlelit basements that pulse with tension.
Not all special effects in The Eternaut were created with generative AI. That much is clear from Sarandos’s comments. But again, Netflix’s choice not to mention this detail before the show’s premiere is unsettling, considering all the ongoing controversies involving AI in entertainment.
The Eternaut will probably be the first of many Netflix originals to use generative AI tools for video sequences and VFX. Hopefully, Netflix will be more transparent about this practice and how it affects the bottom line. After all, if AI helps Netflix save money, then we, the subscribers, should benefit too.
Finally, The Eternaut has been renewed for a second season. Sarandos’s comments on AI use in the Netflix Original show are available in full in Netflix’s June quarter interview.
