Pilot Introduction of "Runway" Software
Partial Use Already in "El Eternauta" Production
Ongoing Opposition, but an Unstoppable Trend
As Netflix begins to fully implement video-generating artificial intelligence (AI) software on production sites, a seismic shift is underway in the content industry. While the use of AI is leading to reduced production costs and improved efficiency, concerns about the impact on related jobs are also spreading at the same time.
According to industry sources on August 6, Netflix has recently begun trial adoption of software from Runway, a startup gaining attention for its AI video generation technology. Runway unveiled its Gen-4 video generation model in April, which maintains consistency in characters, backgrounds, and objects while achieving realistic movement and style. In July, the company released Act-2, a technology that can significantly reduce motion capture costs by naturally transferring the movements of real people to animated characters.
Netflix partially utilized AI technology for the first time in the production of its original series "El Eternauta." When the local production team in Argentina faced a crisis due to budget overruns, they resolved the issue by using AI technology to create a scene of buildings collapsing in Buenos Aires. This work was carried out directly by EyeLine Studios, a production group under Netflix.
Ted Sarandos, Netflix's co-CEO, positively assessed the adoption of AI technology, stating, "We completed the work in one-tenth the time compared to traditional visual effects (VFX) tools, and costs were also greatly reduced." Co-CEO Greg Peters also mentioned that "AI can be used to enhance user experience, such as voice-based content search."
The entire content industry is rapidly reorganizing around AI technology. Major Hollywood studios such as Sony Pictures and Lionsgate are also adopting generative AI, and even Disney, which previously sued Midjourney for copyright infringement, is reportedly considering adopting Runway's technology.
Competition among tech companies is also intensifying. Google recently introduced VO3, which can simultaneously generate video and audio from text. OpenAI has launched Sora, which can generate 20-second videos and extend existing footage. Adobe has released the Firefly Video Model, capable of generating high-definition 1080p videos. Other companies such as Meta, Microsoft, and ByteDance are also unveiling related technologies one after another.
However, concerns about the adoption of AI technology persist. In the United States, actors and writers have staged large-scale strikes opposing the use of AI. There are ongoing controversies regarding the possibility of AI replacing human jobs, issues of compensation for the replication of actors' faces, and copyright infringement related to AI training data. Nevertheless, there is a growing consensus in the industry that the adoption of AI is an unstoppable trend. This is because AI can be used not only for simple automation but also to reduce production risks related to weather, schedules, and budgets, as well as for visualizing storyboards and designing concepts.
CEO Sarandos emphasized, "Generative AI is not just a tool for cost reduction, but an assistant that helps creators make better content." He expressed confidence that the savings in production costs can be reinvested to improve quality, creating a virtuous cycle that strengthens content competitiveness.
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