Netflix has used generative AI on 300 titles so far this year, primarily in post-production, co-CEO Ted Sarandos told investors Thursday. The tools are letting creative teams pull off shots that would have been impossible under budget or timeline constraints, even as the company faces decelerating revenue growth and a 10% jump in content spending.
The streamer's AI-enhanced work appeared in the five-episode documentary "The American Experiment," which features Martin Sheen as the voice of George Washington. Sarandos said that footage was produced "twice as fast and at half the cost." Netflix expects overall content spending to reach up to $20 billion this year, up from $17.1 billion in 2025, with live programming accounting for about 5% of that total.
AI in Post-Production: Faster, Cheaper, and More Shots
Post-production teams used AI to enhance crowd scenes, world-building opening shots, and historical battle sequences - tasks that require the kind of skills covered in AI Post Production Programs. In some cases, Sarandos said, productions would have had to scale back key sequences without AI because they couldn't afford them or crews wouldn't have been able to execute them on the original timeline.
"By equipping creatives with these tools, we believe they are going to enhance their abilities and we are going to have better and more impact for every dollar we spend on our programming," Sarandos said. "So, content creation timelines can be shortened and quality can be enhanced."
Cost Savings and the Reinvestment Flywheel
Sarandos said the cost savings "will likely be reinvested into more content on the service which fuels high quality engagement, and that whole revenue-profit flywheel that's going to come from that." The company's content spend is growing faster than its five-year average of 8%, partly driven by a push into live events.
The results arrived as revenue growth decelerated from 16% in the first quarter of 2026 to 13% in Q2, with 12% guided for Q3. Netflix posted $12.6 billion in quarterly revenue and a 33.4% operating margin, but shares fell as much as 9% after hours. The company also made its largest quarterly buyback ever, repurchasing $4.7 billion in stock, aided by a $2.8 billion breakup fee from Paramount Skydance.
Creative Tensions and the AI Debate
Sarandos was careful to note that "AI will give creatives better tools to bring their visions to life" and insisted that "movies are being made by people who make movies." But the use of AI remains a flashpoint. Filmmaker Guillermo del Toro, who adapted Mary Shelley's "Frankenstein" for Netflix, said last year that he'd "rather die" than use generative AI. AI protections were a central issue in the 2023 Hollywood labor strikes against studios, including Netflix.
Still, Netflix has deepened its investment. It acquired actor Ben Affleck's film tech company InterPositive in March 2026 for up to $600 million and consolidated virtual effects and production operations under the Eyeline studio banner. Sarandos called results from the InterPositive acquisition "early days."
Why this matters for creatives
Netflix's rollout shows AI being used to expand what's possible within a budget, not to replace creative decision-making. For editors, VFX artists, and post-production crews, familiarity with these workflows is becoming a career necessity. Programs such as AI for Creatives Courses offer training on the tools that are now shaping how high-stakes sequences get made - and which shots survive the cutting room floor.
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