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What Did Netflix’s CEO Mean by AI Making Films “10% Better”?

Netflix co-CEO Ted Sarandos framed AI as a possible way to make films 10% better—but the figure was hypothetical, not a measured result.
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Netflix co-CEO Ted Sarandos said he saw an opportunity for AI to make movies “10% better” during the company’s April 17, 2025 earnings call. He was describing a possibility—not reporting a measured improvement. The transcript offers no quality metric, baseline, or study showing that AI has improved Netflix films by 10%.

What Sarandos said—and what he was comparing

During Netflix’s Q1 2025 earnings call, analyst Ben Swinburne asked how Netflix was using AI to help creative partners and how significant the technology might become. Sarandos referred to a cost-focused idea he attributed to James Cameron, then said he saw “an even bigger opportunity if you can make movies 10% better.” The official earnings-call transcript dates the answer to April 17, 2025.

The comparison was between two possible aims: making production cheaper and improving what appears on screen. Sarandos expressed his view of AI’s potential; he did not say either outcome had been achieved. The “50% cheaper” figure was part of the comparison he attributed to Cameron, not a Netflix result established by the transcript.

Does the 10% figure mean AI has made films better?

No. In the transcript, 10% is a rhetorical illustration, not a reported statistic. Sarandos gives no definition of “better,” measurement method, comparison film, or result. The number should not be read as evidence that a Netflix film—or films generally—has become 10% better through AI.

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That distinction matters because film quality is not a single, self-evident quantity. The earnings-call answer does not specify whether “better” means stronger visual effects, improved storytelling, greater audience satisfaction, or something else. It presents no independently evaluated evidence for a quality gain.

Which filmmaking tasks did he have in mind?

Sarandos discussed production workflows rather than an AI system writing or directing a film on its own. The examples he named were:

  • Creating references for sets.
  • Previsualizing scenes or sequences before filming.
  • Preparing visual-effects sequences.
  • Planning shots.

He suggested these kinds of tools could help productions with smaller budgets access visual effects. That is a claim about possible creative and production support, not proof that the tools improve a finished film or reduce costs by a particular amount.

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How Netflix later described its approach

In its April 16, 2026 Q1 earnings-call transcript, Netflix again described AI as a way to give artists better tools, with examples including set references, previsualization, VFX preparation, and shot planning. Sarandos also said the uses could improve on-set safety. These are statements by Netflix about its approach and expected benefits, not independent evaluations of results. The 2026 earnings-call transcript does not establish that a specific quality gain has been measured.

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Netflix’s March 5, 2026 announcement that it acquired InterPositive offered a similar creator-centered framing. The company described InterPositive as developing AI-powered tools for filmmakers. Founder Ben Affleck said the tools were designed around filmmaking techniques and to leave creative decisions in artists’ hands. Those statements describe the company’s intentions; they are not a third-party assessment of the tools’ performance. See Netflix’s InterPositive announcement.

In remarks published June 4, 2026, Netflix VP of Content EMEA Larry Tanz said new technology, including AI, should help creators make better stories and make them easier for audiences to find. He also described Netflix’s exploration of AI across post-production and discovery as a way to support human creators rather than replace them. This is Netflix’s stated principle, not independent evidence that AI has improved stories. Read Tanz’s remarks.

What the remark does—and does not—establish

  • It establishes: Sarandos sees potential value in using AI to support filmmaking, and he considers creative improvement a more compelling opportunity than cost reduction alone.
  • It does not establish: that AI has made a film 10% better, that Netflix has measured such a gain, or that AI can independently produce a better movie.
  • It is about: production workflows and Netflix’s technology strategy—not a specific consumer AI-film product or an investment recommendation.

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