Netflix tests more AI tools

Streaming giant Netflix is reportedly testing new artificial intelligence (AI) content creation tools following its use of generative AI during the production of the series El Eternauta. That’s according to an anonymously sourced Bloomberg report.

The California-based firm is reportedly using Runway AI’s video tools, assessing whether its AI video generation software will be suitable for Netflix’s production workflow.

The report did not clarify whether Netflix plans to generate entire scenes using the technology or if it is merely looking to bring down its VFX costs. It is also not known whether Runway’s AI tools would be used in post-production and editing tasks.

Walt Disney is another studio which is reportedly testing Runway’s video generation tools.

Netflix cuts costs with AI

According to The Verge, Ted Sarandos, co-CEO of Netflix, stated that using generative AI for one of the scenes in El Eternauta turned out to be faster than using traditional VFX. In the series, there's a scene where a building in Buenos Aires, Argentina, collapses after being hit by a train. Rather than filming it conventionally and adding visual effects later, Netflix used AI to generate the entire scene synthetically.

Sarandos reportedly told shareholders: “That VFX sequence was completed 10-times faster than it could have been completed with traditional VFX tools and workflows. Also, the cost of it just wouldn't have been feasible for a show in that budget.”

Netflix is now convinced of the capabilities of AI and plans to use it again in the future to help creators “make films and series better, not just cheaper,” according to Sarandos.

In May, Netflix revealed a new AI-powered search feature on mobile that lets users find shows or movies using conversational phrases, like “something funny and upbeat” or “stories about dancers.”

How data analytics helps Netflix generate billions

Along with its innovative use of AI, Netflix also applies advanced data analytics practices to drive performance and revenue. The data Netflix collects on its users is immense. In addition to remembering which shows an individual watched and how they rated it, amongst many other things, Netflix also looks at viewing day, time, location and device, platform searches, content pauses and abandonment and browsing and scrolling behavior.

By applying a series of algorithms to this data, Netflix can not only predict what customers are likely to watch next but also arranges selections into rows based on an individual’s viewing preferences.

Perhaps one of the most disruptive things about Netflix is its use of analytics to optimize filmmaking from an operational and financial standpoint. Netflix uses analytics to optimize everything from the user experience on the app to logistics for shoots.

For example, Netflix has developed algorithms to predict the projected cost of filming in one location versus another. It also uses analytics to increase the efficiency of filming and post-production activities such as editing by reducing bottlenecks and streamlining workflows.

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