Netflix just dropped a sci-fi bombshell with “The Eternaut,” using AI to create a jaw-dropping building collapse sequence that delivered blockbuster-level destruction at lightning speed. Their partnership with Argentine creatives proved AI could generate complex VFX 10 times faster than traditional methods, turning what would’ve been a budget-busting nightmare into affordable magic. Co-CEO Ted Sarandos insists it’s about enhancement, not replacement—though Hollywood’s post-production crews might disagree as the streaming giant plans deeper AI integration.
The guinea pig? A building collapse sequence in “The Eternaut,” where roughly 2-3 seconds of AI-generated footage made it to your screen. Yeah, that’s right – while you were binge-watching, you witnessed history in the making.
Here’s where it gets interesting: Netflix’s internal VFX division, Eyeline Studios, partnered with Argentine creatives to pull off what would have been budget-breaking using traditional methods. The AI approach delivered results 10 times faster than conventional VFX workflows, making complex scenes feasible within TV budgets.
Netflix’s Eyeline Studios cracked the code: AI-powered VFX delivering blockbuster effects at TV budgets, 10x faster than traditional methods.
Co-CEO Ted Sarandos isn’t shy about the strategy either. He’s positioning AI as “*better instruments for real people doing real work*” – enhancement, not replacement. Translation: they want to democratize those blockbuster-level effects that usually require Marvel money. The approach aims to assist rather than replace VFX artists, though concerns about job losses in post-production continue to circulate throughout the industry.
But Netflix isn’t stopping at exploding buildings. They’re going full AI integration across the board:
- Smart search functionality launching May 2025, letting you find shows using conversational phrases
- Content pre-visualization and shot-planning assistance
- Interactive ads in streams and pause screens within the year
- Enhanced personalization features and analytics
The numbers backing this AI gamble? Pretty solid, actually. Netflix reported $11.08 billion in Q2 2025 revenue (up 16% year-over-year) with $3.13 billion profit. Over 95 billion hours watched in the first half of 2025 alone. Non-English titles dominated viewing patterns, representing one-third of all content consumption during this period.
What’s fascinating is the ripple effect – *other Hollywood studios are now in active discussions with AI vendors* about similar tool adoption. Netflix just gave everyone permission to admit they’re experimenting too.
The company expects AI’s role to expand beyond VFX into scripting, planning, marketing, and customer engagement. Cost reductions from AI implementation should boost margins even further, which investors are definitely watching. With global AI market projections reaching $1.85 trillion by 2030, Netflix’s early adoption positions them at the forefront of this transformative technology.
