NFLXNetflix, Inc.

“On the content side specifically, it takes a great artist to make great art—AI will not change that—but AI will give those artists better tools to bring visions to life in ways we are just scratching the surface on. Today, talent leverages these tools for set references, previsualization, VFX sequence prep, and shot planning—all of which also improve on-set safety, which is not talked about enough.”

“With our acquisition of Interpositive, we think it accelerates our GenAI capability because it is proprietary technology created specifically for filmmakers and filmmaking, different from other GenAI video applications. While our ownership of Interpositive is very new, we have generated interest with creators who have spent time with the tools, and we are seeing momentum build around adoption.”

“We have been in personalization and recommendation for two decades, but we still see tremendous room to make it better by leveraging newer technologies. Recommendation systems based on new model architectures not only improve current personalization but also let us iterate and improve more quickly—adding support for different content types much more efficiently.”

“The last area I will mention is advertising. We are growing scale there and see an opportunity to leverage AI within our Netflix, Inc. Ad Suite—making it easier to design new creative formats, custom ads, improve contextual relevance, and roll them out more quickly and effectively, allowing partners to leverage them more easily.”

“As noted in the letter, in the last quarter these new capabilities drove increased engagement with the service—that is super exciting to see. The better we execute here, the more our product experience acts as a force multiplier to the large content investments we make.”

“In general, we expect GenAI to help make content better—better tools and processes. Netflix, Inc. will remain at the forefront in exploring and innovating AI in the creative process. Given our technology DNA, unique data assets, and tremendous scale, we see great opportunities to leverage new technical capabilities across every aspect of the business. AI will deliver benefits for our members, creators, and employees.”

“Number two, we are leveraging technology to improve the service—from how it is delivered to how to find great things to watch, and now even how content is created and produced.”