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Netflix's AI Strategy Has a 25-Year-Old Precedent

Netflix is scaling generative AI tools across hundreds of titles. Remember when Peter Jackson invented 10,000 digital orcs? Same idea.

Netflix's AI Strategy Has a 25-Year-Old Precedent

Published July 18, 2026 · Category: Finance

Overview

Netflix (NASDAQ: NFLX) would like everyone to know that generative AI is transforming content production. The company's Q2 shareholder letter mentions AI tools being used in roughly 300 titles this year. Co-CEO Ted Sarandos highlighted a documentary called American Experiment that featured 17 minutes of AI-enhanced footage, produced "twice as fast and at half the cost."

That's impressive. Also, it's not exactly new.

Details

In 2001, Peter Jackson needed to fill the screen with thousands of soldiers for his ambitious Lord of the Rings battle sequences. Traditional methods would have required either ruinous budgets or a lot of very patient extras. So Jackson's Wētā Digital company built MASSIVE, a software package that generated autonomous digital agents capable of fighting, fleeing, and dying on their own. It was AI-powered production before AI was cool.

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Source

Originally published at www.fool.com.

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