Netflix using startup Runway AI's video tools for production

Los Angeles Times

2 days ago

Netflix Inc. has begun using artificial intelligence video generation software from startup Runway AI, testing the waters with a technology that's controversial in Hollywood.
Netflix is currently using the New York-based startup's tools in content production, according to a person familiar with the matter, who asked not to be named in order to discuss private conversations. Netflix declined to comment.
Walt Disney Co., meanwhile, has been testing out Runway's technology and has talked with the startup about possible uses for its generative AI tools, the person said. A Disney spokesperson said the company has no plans to integrate Runway's software into its content production pipeline at this time. Runway declined to comment.
The companies' use of Runway's AI video tools, which has not previously been reported, could raise concerns in the entertainment industry. Many film and TV professionals are anxious about AI's impact on their livelihoods. Disney recently sued Midjourney Inc., another AI image and video startup, for copyright infringement. But AI also offers the promise of speeding up some video production tasks and saving money.
In a conference call Thursday, after Netflix released its second-quarter results, co-Chief Executive Officer Ted Sarandos said the company is using AI in content production. That includes creating special effects shots more quickly and cheaply than it previously had been able to with traditional visual effects tools and processes.
Sarandos said Netflix used the technology for the first time on screen to depict a building collapsing in a show called 'El Eternaut' from Argentina. He did not disclose which AI software it used for that particular scene; a source familiar with the matter, who asked not to be named in order to discuss private information, said Runway's software was not used to create the effect.
Runway is competing in an increasingly crowded corner of the fast-growing market for AI tools with established companies like OpenAI and Google, along with a slew of smaller, newer startups.
The startup has more traction than most AI startups in Hollywood, however. It kicked off a frenzy around AI video generators in early 2023 with the release of a model that could produce slightly choppy-looking three-second clips based on written prompts such as 'drone footage of a desert landscape.' Its technology has since become far more capable and the company has inked a deal with Lionsgate to train an AI model on the studio's content that can be used in its film projects.
Investors have poured $545 million into the company thus far, with a funding round of $308 million earlier this year valuing the company at more than $3 billion.
More recently, Runway has pushed deeper into the world of animation and special effects. Earlier this month, the company started rolling out a new AI model called Act-Two that is meant to make the motion-capture process — traditionally clunky, pricey and time consuming — simpler and cheaper. The model, which works with Runway's flagship Gen-4 AI system, can map a video of a person's body movements onto animated characters.
Other AI startups have also tried to make inroads in the entertainment industry. As Bloomberg News previously reported, OpenAI spent months talking to large studios, including Disney, about its AI video generator, Sora. While OpenAI has found a receptive audience among some filmmakers, it has yet to announce a large commercial partnership for the product.
Metz writes for Bloomberg.