Netflix has officially crossed a new creative threshold. For the first time, the streaming giant has incorporated generative AI into one of its original television series — and it’s not just about saving costs. It’s about reshaping how stories are made.
The show in question is El Eternauta, an Argentinian science fiction series based on the classic graphic novel. The series explores life after a deadly snowfall strikes Buenos Aires. But beyond the story, it’s the process that’s grabbing global attention.
Netflix co-CEO Ted Sarandos confirmed that the series includes visual effects sequences created using AI-powered tools — specifically, a collapsing building scene in Buenos Aires was delivered in record time. According to Sarandos, the generative AI-assisted visual effects were completed ten times faster than through traditional pipelines.
“These are real people using better tools. AI isn’t replacing our creators — it’s helping them imagine more, faster, and better,” Sarandos emphasized during the company’s Q2 earnings call.
This move comes amid an ongoing industry-wide debate on the role of AI in entertainment. In 2023, both writers and actors in Hollywood raised serious concerns during strikes, demanding safeguards to ensure AI would empower — not eliminate — human jobs.
Netflix’s stance now appears clear: AI is a tool for augmentation, not automation. The company claims that leveraging these new workflows allowed El Eternauta to be produced at a fraction of the usual cost for a VFX-heavy series — a critical development in an era of rising production budgets.
Beyond technology, Netflix’s earnings also told a positive story. The company reported $11 billion in revenue for Q2 2025, marking a 16% YoY growth. The final season of Squid Game played a pivotal role, once again proving the platform’s unmatched global storytelling power.
Additionally, Netflix’s advertising ambitions are accelerating. The platform expects its ad-supported tier to double in scale this year, as it rolls out proprietary ad tech and scales pricing across key markets.
“Content quality, ad revenue, and pricing momentum are converging,” noted Mike Proulx, VP at Forrester. “The tough infrastructure work is behind them — now it’s about scaling.”
Why This Matters:
For Netflix, this moment isn’t just a technical milestone — it’s a business model shift.
- AI-enhanced production could democratize premium content creation, especially in emerging markets.
- It allows more room for risk-taking on local stories with global potential — without the massive price tag.
- And with advertising on the rise, expect more strategic AI deployment across content creation, recommendation engines, and ad tech.
As Netflix continues redefining streaming, one thing is certain: AI isn’t replacing the creative process — it’s accelerating it.
