In a recent call after Netflix’s quarterly earnings report, co-CEO Ted Sarandos addressed concerns within the creative community regarding the impact of artificial intelligence (AI) on the entertainment industry. While acknowledging the potential of AI as a valuable tool for creators, Sarandos emphasized that excellent storytelling remains the foundation of the entertainment business.
Sarandos expressed his belief that AI will generate a range of creative tools, enabling creators to tell better stories. However, he emphasized that the success of series and movies ultimately lies in their ability to connect with the audience. The beauty of the writing, the chemistry of the actors, the plot, and surprise twists all contribute to this connection. Sarandos suggested that audiences prioritize connecting with the storytelling itself, rather than being overly concerned with the technological aspects or budgets involved.
To illustrate his point, Sarandos referred to the evolution of animation over the past century. He highlighted how advancements in technology, such as the transition from hand-drawn to CGI animation, have not only improved the quality but also expanded the animation industry. Sarandos argued that making content 10% better holds more value than making it 50% cheaper.
While acknowledging the current experimentation with AI by filmmakers and producers, Sarandos emphasized the need to observe its development before making any meaningful predictions about its impact on the industry.