Netflix Ushers in a New Creative Era with Generative AI Debut in ‘El Eternauta'.

Economic Times

4 days ago

Synopsis
For the first time in its history, Netflix has officially used generative AI in a fictional show, El Eternauta. This groundbreaking moment isn't just about visual effects—it's a larger signal that AI is being integrated as a core creative partner in global content production. The implications are vast: faster workflows, smarter budgets, and an evolution of storytelling itself.
Netflix's adaptation of El Eternauta, the legendary Argentine graphic novel by Héctor Germán Oesterheld, was always going to be ambitious. The story centred around a mysterious snowfall in Buenos Aires that brings death from above, demanding high-stakes, cinematic worldbuilding. But instead of relying solely on traditional VFX pipelines, Netflix made a daring choice: integrating generative AI for the very first time in a show's post-production process.The scene that marks this innovation? A building collapsed in Buenos Aires. Rather than hiring dozens of VFX artists or outsourcing to high-cost post-production houses, Netflix turned to its in-house Eyeline Studios, using AI to generate the scene in a fraction of the time and cost. This wasn't about cutting corners. It was about proving that a new creative paradigm had arrived.Ted Sarandos, Netflix's co-CEO, revealed during the Q2 2025 earnings call that the building collapse was generated using AI and completed in 'a tenth of the time and cost' of traditional visual effects. That single phrase isn't just a passing remark—it's an executive roadmap. Netflix has always championed data-driven content strategy, and this is the next logical extension: optimizing not just what to make, but how to make it.From a corporate standpoint, this is a case study in operational efficiency. AI allows Netflix to hit aggressive content deadlines, control production overheads, and enable higher creative risk without higher financial risk. For a platform pumping out hundreds of originals annually, generative AI doesn't just add value—it multiplies it.There's no shortage of anxiety around AI in creative industries, especially after the Hollywood strikes of 2023. Writers and actors demanded protections from AI's potential to replace human labour. But Netflix's use of AI in El Eternauta doesn't sideline artists—it empowers them.
According to Sarandos, the AI-generated scene was created by 'real people doing real work' with the help of better tools. This distinction is critical. In the El Eternauta production pipeline, AI acted as a force multiplier—amplifying what human artists imagined, speeding up labour-intensive sequences, and allowing the production team to spend more time on storytelling, character, and narrative nuance.Rather than automating away creativity, Netflix is making the case for augmented creativity, where AI picks up the tedious tasks and humans focus on what they do best: emotional depth, originality, and vision.El Eternauta isn't just any series. It's a cultural juggernaut in Latin America, deeply tied to Argentina's political history and national psyche. Producing a show with that level of regional gravity, and doing it justice on a global platform, was never going to be easy, especially without blockbuster-level budgets.Generative AI made it possible. The technology democratizes scale, allowing regional stories to be produced with Hollywood-level polish. This matters in Netflix's broader international growth strategy, where local storytelling needs global-grade production. AI can bridge the gap between vision and feasibility, allowing more shows like El Eternauta to cross borders—and expectations.What's especially significant about this AI deployment is that it's not an isolated test—it's a preview of where Netflix is headed. Generative AI is already being tested across the company's workflow. Co-CEO Greg Peters said they're experimenting with AI-generated trailers, visual marketing assets, and even natural-language search prompts like, 'Show me romantic thrillers from the 1990s.'That integration points toward a multi-layered AI transformation: not just what's on screen, but how it's found, recommended, marketed, and monetized. Netflix isn't just tweaking one corner of its operations—it's retrofitting its entire content ecosystem for an AI-assisted future.And the long-term payoff is massive: faster go-to-market timelines, smarter asset creation, more personalized user journeys, and ultimately, higher audience engagement—all without dramatically increasing spend.Netflix appears to be playing within those guardrails. The El Eternauta case shows that when AI is used transparently, ethically, and as a support tool—not a replacement—it can unlock massive creative value. The company's public stance reflects a desire to build AI into the process without displacing the people who make stories human.The success of El Eternauta is not about a single scene. It's about what that scene represents: Netflix's willingness to embrace next-gen tools without compromising on creative integrity. The result is a powerful signal to creators, investors, and competitors alike that AI is no longer a back-office experiment. It's a production reality.Audiences might never notice that one scene was AI-generated—and that's the point. When done right, AI enhances the story without distracting from it. And for Netflix, that invisible efficiency is its greatest asset.This is more than just a smart way to cut costs or speed up timelines. It's the future of global entertainment—more accessible, more diverse, more scalable, and powered by a new creative partnership between humans and machines.