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Netflix shares slide as generative AI usage fails to assuage concerns
Netflix said gen-AI workflows have been used in about 300 titles, with most use in post-production, but the stock still fell 7.7% to $68.61 Friday.
Netflixs push to use generative AI to cut costs did not stop investor worries, with the streaming companys shares falling 7.7% to $68.61 in afternoon trading Friday, according to LiveMint Markets. The stock is down 27% this year, far below the S&P 500s 9.3% gain.
On its second-quarter earnings call after the market close Thursday, Netflix provided an update on its use of generative AI workflows. Co-CEO Ted Sarandos said the workflows have been used in about 300 of the companys titles, with most of the technology utilized in post-production.
Sarandos said Netflix is using gen AI to support work such as enhancing crowds and historical battle scenes. He also argued the tools help preserve sequences that production teams might otherwise skip due to cost or tight time frames.
LiveMint Markets noted that while investors often respond positively to cost-cutting, there are ongoing concerns about user engagement and competitive pressure, and some critics say AI can harm creativity or put jobs at risk.