Ted Sarandos, co-CEO of Netflix Inc. (NASDAQ:NFLX), said on Tuesday that the company isn't worried about competing with AI-generated content for viewers' attention.
Check out the current price of NFLX stock here.
Taylor Swift Example Illustrates AI’s Limited Impact
According to Business Insider, Ted Sarandos compared the situation to the music industry, where established artists like Taylor Swift remain dominant despite the rise of AI-generated alternatives.
"If music is a leading indicator of all this — AI-generated music has been around for a long time, and there’s a lot of it, and it’s a pretty small part of total listening," the global streaming giant's executive said during Tuesday's earnings call. "Established artists like Taylor Swift remain more popular than ever."
AI Video Tools Pose Questions For User Content
Sarandos and co-CEO Greg Peters responded to questions about OpenAI's Sora 2 and Meta Platforms Inc. (NASDAQ:META) AI video tools during Tuesday's earnings call.
OpenAI, a leading generative AI company, is also reportedly backing the AI-animated film Critterz, which has a budget under $30 million and a nine-month production timeline.
Sarandos further noted that while AI might affect viewership of user-generated content in the near term, it cannot replace Netflix's extensive content library.
“Writing and making shows well is a rare commodity, and it’s only done successfully by very few people,” Sarandos said.
Matt Barrie, CEO of Freelancer.com, previously noted “AI can’t replace creativity yet,” reflecting similar industry sentiment on creative work’s enduring value.
Production Enhancement Strategy
The subscription-based streaming service revealed in its shareholder letter that filmmakers used generative AI to de-age characters in Happy Gilmore 2, starring Adam Sandler.
Sarandos said the company is not concerned about AI replacing creativity but is very excited about AI tools that can help enhance creativity.
Stock Performance
The stock has gained 62.43% over the past year, with a market capitalization of $527.48 billion.
With a price-to-earnings ratio of 52.90, Netflix has an average daily trading volume of 3.16 million shares.
With strong momentum in the 81st percentile, Benzinga's Edge Stock Rankings show that NFLX is undergoing short- to medium-term consolidation alongside long-term upward movement. See how its momentum compares with other well-known stocks.
Read Next:
Photo: marekfromrzeszow / Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
