Warren Buffett Explained Why Netflix's AI Edge Won't Last -- 40 Years Ago
Netflix produced a scene 10 times faster using generative AI tools, but any advantage will be fleeting.
Overview
Streaming giant Netflix (NASDAQ: NFLX) failed to meet expectations with its second-quarter results and guidance last week, but the company did mark an important first. A sequence from Argentine science fiction series and Netflix original El Eternauta used generative AI for a building collapse scene. This is the debut of final footage created with generative AI tools appearing in a Netflix original film or series.
Netflix co-CEO Ted Sarandos noted in the earnings call that it would have taken ten times as long to create the sequence using traditional tools and workflows. He framed the AI tools as a way for creators to make better content for less money.
Details
The prospect of dramatically shorter production times and lower costs for Netflix's originals sounds great on the surface, but an old Warren Buffett quote throws some cold water on the idea that this will give Netflix a durable cost advantage.
Source
Originally published at www.fool.com.