Netflix revealed in the latest financial communication that the generated AI is entering the video production process more deeply. The Co-Executive Director, Ted Sarandos, stated that in a five-episode documentary called " The American Exchange ", 17 minutes of images had been enhanced and processed by AI twice as fast as they were produced and the cost had been reduced to half.

AI has been used in about 300 works.

The company disclosed that, since this year, its creative partners have used the generated AI workflow in about 300 works, mainly in late production. In a letter to the shareholders, management mentioned that the team had used AI for crowd enhancement, the creation of an opening view of the world and the handling of the historical war scene.

According to Sarandos, part of the footage could not be covered by the budget or the production team could not be completed within the established cycle without the help of AI. Companies believe that such tools can help creators to do more under established budgets and shorten the production cycle.

Content expenditure up to $20 billion

Netflix predicts that overall content spending will increase by about 10 per cent this year, up from the average of about 8 per cent over the past five years. The report mentions that the company ' s input this year may be up to $20 billion, up from $16.2 billion in 2024 and $17.1 billion in 2025.

Live content is also one of the reasons for the increase in expenditure. Netflix states that live programmes are expected to account for 5 per cent of content expenditure this year. According to Sarandos, the savings brought by AI may continue to be invested in more content production in the future to sustain the platform ' s viewing time and income growth.

  • That's $12.6 billion for the second quarter.
  • The business profit rate is 33.4%.
  • The year-round collection guidelines range from $51 billion to $51.4 billion.

After the financials, we're down.

Although overall performance for the season was in line with market expectations, investors were cautious about slowing growth. Reports indicate that the rate of increase in the Netflix battalion has slowed from 16 per cent in the first quarter of 2026 to 13 per cent in the current quarter and 12 per cent in the third quarter. After the release of the newspaper, the company's stock market fell by 9 per cent.

At the same time, the company announced that the watch participation report, What We Watched, would be published twice a year instead of once a year as of 2027. Another action of interest was Netflix ' s repurchase of $4.7 billion in stock this quarter, which resulted in a new, high-scale single-season repurchase.

Additional information:It was reported that Netflix had acquired Ben Affleck ' s film technology company, InterPositive, in March 2026, with an alleged turnover of up to $600 million; it had previously integrated virtual special effects and production operations under the Eyeline flag.