Netflix announces record $11 billion revenue as fans rip slate of ‘garbage’ shows

In the same period last year, the streaming giant brought in $9.6 billion for a net profit of $2.15 billion. Media Play News attributed the 16% year-on-year income jump and 47% increase in profits to an undisclosed increase in subscribers around the world, higher subscription pricing and increases in ad revenue.

On social media, some users praised the company’s business strategy with one writing: “The password sharing crackdown is clearly working. Remember when everyone thought it would backfire? Netflix played the long game perfectly.”

However, others complained that despite Netflix’s increasing revenue the quality of their product is declining. One user opined: “More [people] sitting at home doing nothing than ever. Most Netflix shows recently have been garbage.”

Another added: “People will watch anything.”

Shortly after releasing the second quarter results, Netflix co-chief executive Ted Sarandos confirmed with analysts that Argentinian sci-fi show The Eternaut had become the first show to use AI on the platform.

“We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper,” said the 60-year-old.

According to Sarandos, the Spanish language series, which follows the survivors of a lethal snowfall that decimates the population, used AI to depict a building collapsing in Buenos Aires.

He added: “That sequence actually is the very first AI final footage to appear on screen in a Netflix original series or film. So the creators were thrilled with the result.”

Praising the work of the visual effects team, he added: “Using AI-powered tools, they were able to achieve an amazing result with remarkable speed and, in fact, that VFX sequence was completed 10 times faster than it could have been completed with traditional VFX tools and workflows.”

Sarandos also championed the fact that AI allowed the show, which has a small budget, to have convincing effects that otherwise “wouldn’t have been feasible” for a project that size.

The executive also moved to dispel any fears about AI replacing anyone’s role in the film and TV industry, claiming that those using the tools have seen the “benefits in production through pre-visualisation and shot planning work, and certainly visual effects”.

The use of AI in film and television is a hot topic, with the likes of Robert Downey Jr and James Gunn firmly speaking out against the technology while James Cameron and Ben Affleck have embraced it.