Netflix says AI cut time and cost on documentary footage

Netflix used artificial intelligence to help create 17 minutes of footage for a documentary, a sign of how the company is trying to control production costs while spending more on programming. Co-CEO Ted Sarandos said the AI-enhanced work on The American Experiment was produced “twice as fast and at half the cost.”

The five-part documentary features Martin Sheen as the voice of George Washington and includes political figures such as former vice presidents Kamala Harris and Mike Pence. Sarandos pointed to the project as an example of how generative AI can help production teams, especially after filming, deliver shots that might otherwise be too expensive or too slow to complete.

Netflix told shareholders that its creative partners have used generative AI workflows on 300 titles so far this year, with most of that work in post-production. The company said teams used AI for crowd enhancement, opening shots that build out settings, and historical battle scenes.

Sarandos said on Thursday’s earnings call that giving creative teams AI tools could improve output for each dollar spent on programming. He also said shorter production schedules and savings could be put back into more titles for the service.

Netflix said it may spend up to $20 billion on content this year, after content spending rose from $16.2 billion in 2024 to $17.1 billion in 2025. The company expects content spending to climb 10% this year, compared with an average increase of 8% over the past five years, and said live programming is expected to make up 5% of content spending.

The company’s push into AI comes after Hollywood labor disputes in 2023 put protections for film and television workers at the center of negotiations with studios, including Netflix. Sarandos said AI would give filmmakers better tools and emphasized that “movies are being made by people who make movies.”

Some creators tied to Netflix have objected to generative AI. Guillermo del Toro, who adapted Frankenstein for Netflix, said last year while promoting the film that he would “rather die” than use generative AI, according to Deadline.

Netflix has continued investing in production technology. The company acquired actor Ben Affleck’s film technology company InterPositive in March 2026, a deal Bloomberg reported could be worth up to $600 million, and consolidated its virtual effects and production operations under the Eyeline studio banner in 2025. Sarandos said the InterPositive work remained in its early stages.

The cost focus comes as Netflix faces pressure from investors and a crowded market for attention. Bob Lang, founder of Explosive Options, said in an emailed statement that Netflix competes not only with Disney and HBO, but also with gaming companies including Microsoft, Sony and Nintendo, plus short-form video on TikTok, Facebook and YouTube.

For the second quarter, Netflix reported revenue of $12.6 billion, up 13% from a year earlier, and an operating margin of 33.4%. The company narrowed its full-year revenue outlook to a range of $51 billion to $51.4 billion and kept its 31.5% operating margin target, which it said would imply operating income growth of more than 20% in 2026.

Revenue growth has slowed from 16% in the first quarter to 13% in the second quarter, with Netflix guiding for 12% growth in the third quarter. Shares fell as much as 9% in after-hours trading after the earnings release, even though results were generally in line with expectations.

Netflix also said it will reduce its What We Watched engagement report from twice yearly to once a year starting in 2027. The company repurchased $4.7 billion of stock during the quarter, its largest quarterly buyback, helped by a $2.8 billion breakup fee from Paramount Skydance after its deal with Warner Bros. Discovery collapsed in February.

This story draws on original reporting from Fortune.