Netflix Introduces Generative AI Visual Effects in The Eternauts, Marking Industry First
Netflix has confirmed it has used generative artificial intelligence (AI) visual effects in one of its original TV shows for the first time. The technology was applied to create a building collapse scene in the Argentine science fiction series The Eternauts.
The announcement was made by Netflix’s co-chief executive, Ted Sarandos, as the streaming giant reported strong financial results, with 16% revenue growth to $11 billion for Q2 2025 and profits rising from $2.1 billion to $3.1 billion compared to the same period last year.
Why Netflix Is Using Generative AI in Original Content
Speaking at Netflix’s earnings presentation, Sarandos said generative AI allowed the production team of The Eternauts to deliver high-quality visual effects:
- 10 times faster than traditional special effects methods
- At a much lower production cost
- Enabling smaller budgets shows how to achieve premium-quality visuals
Sarandos emphasised:
“That sequence actually is the very first generative AI final footage to appear on screen in a Netflix original series or film. So the creators were thrilled with the result.”
AI in Entertainment: Industry Concerns Remain
While Netflix celebrates the efficiency benefits, AI remains a controversial topic in Hollywood.
During the 2023 Hollywood strike, the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) demanded stronger regulations around AI usage in content creation. Key concerns included:
- AI is creating content using existing work without consent
- Fears of AI replacing human actors, artists, and VFX professionals
Despite these concerns, Netflix appears committed to exploring AI-driven production tools, particularly for shows operating with limited budgets.
Netflix’s Q2 2025 Performance Boosted by Squid Game Success
Alongside the AI announcement, Netflix reported a significant boost in performance:
- 16% revenue increase to $11 billion
- $3.1 billion in profits
- Driven in part by the third and final season of Squid Game, which has attracted 122 million views globally so far
Key Takeaways: Netflix’s Generative AI Milestone
- First Use Case: Building collapse scene in The Eternauts (Buenos Aires)
- Benefits: Faster production, lower costs, enabling high-quality VFX for smaller productions
- Industry Impact: Raises ongoing debates around AI’s role in film and TV production
