Netflix co-CEO Ted Sarandos has called artificial intelligence controversial so far, but it’s just the latest example of entertainment and technology coming together. It has hidden potential.
Responding to a question from a Wall Street analyst on Netflix’s third-quarter earnings call, Sarandos said there is “a lot of hype, both good and bad” about the potential transformative impact of AI.
“Entertainment and technology have gone hand in hand throughout history,” he said. “I think it’s really important for creators to be very curious about what these new tools are and what they can do. But AI has to pass a very important test. Does it help us make better shows and better movies? That’s the test, and that’s what we need to figure out.”
Netflix has “benefited greatly by improving the quality of its movies and shows, much more so than by making its prices a little lower,” Sarandos added. “So any tool that can improve quality and improve quality is going to be a huge help to the industry.”
Ahead of the conference call, the company reported strong numbers across the board, including quarterly subscriber growth of 5.1 million, which exceeded Wall Street expectations.
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As one of the key negotiators for studios and streamers during the 2023 dual strikes, Sarandos worked extensively on AI issues. WGA and SAG-AFTRA called for industry restrictions on this technology as a job preservation measure. In the end, some adjustments were made on this front, although not all requests were met.
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The labor dispute comes just months after OpenAI introduced a dramatically improved version of ChatGPT, sparking debate across the social, financial, and technical communities about its potential impact. Since then, an arms race has begun in most sectors of the economy, with companies betting on various forms of AI to transform their businesses.
