Netflix’s Ted Sarandos Says AI Is About Better Movies, Not Just Cheaper Ones
Netflix’s co-CEO pushes back on narratives of AI as a cost-cutting tool, framing it instead as a way to expand creative possibility and level the playing field for smaller productions.
UKinUSA, CC BY-SA 2.0 <https://creativecommons.org/licenses/by-sa/2.0>, via Wikimedia Commons
Netflix has often been the studio that sets the tone for how entertainment is produced and distributed. Now, Co-CEO Ted Sarandos is trying to shape the conversation around how artificial intelligence fits into that ecosystem. During the company’s latest earnings call, Sarandos offered a carefully worded take on AI’s role in filmmaking—one that rejects the idea of technology simply replacing jobs and instead highlights the ways it could boost creativity.
Sarandos responded directly to recent comments by filmmaker James Cameron, who had suggested that AI would primarily be used to drive down production costs. Cameron's view echoes a common fear: that AI will become just another tool to trim budgets, perhaps at the expense of creative teams. Sarandos, however, offered a different lens. For him, the benefit of AI isn't in the savings, but in the reach. It's about what filmmakers can do with less, not what studios can do without.
The streaming giant has already seen benefits. AI tools are being used at Netflix to support areas like set design and visual effects planning. Sarandos pointed out that pre-visualization work, typically time-consuming and costly, can now be streamlined using AI-generated imagery. This allows directors to experiment earlier and more often—something that historically might have only been possible for top-tier budgets.
Another area seeing significant gains is in de-aging and digital doubles. Sarandos noted that high-end effects like these, once only affordable for blockbuster franchises, are becoming accessible to smaller productions. In a world where viewers expect high production values across all content, AI could be the equalizer.
Still, Sarandos was cautious not to oversell the tech. AI isn't replacing the creative process; it's part of the toolset. Human vision, storytelling instincts, and performance remain central. But AI can speed up workflows and enhance fidelity, freeing up filmmakers to focus on narrative rather than logistics.
The comment comes at a time when the entire industry is recalibrating its relationship with automation. From SAG-AFTRA’s recently ratified contracts to the WGA’s evolving language around AI, the topic is charged. Sarandos' framing offers a kind of middle path: AI as collaborator, not competitor.
Netflix’s positioning also comes with strategic weight. As studios compete to deliver more content across global markets, the efficiency offered by AI may be necessary just to keep pace. But how studios choose to implement that efficiency—whether to amplify voices or silence them—will shape how AI is received in creative communities.
For now, Sarandos seems intent on calming nerves while acknowledging potential. If AI can make movies better, not just cheaper, Netflix might just find itself on the more palatable side of the AI debate.