‘Not Just 50% Cheaper.’ Netflix’s Ted Sarandos Has His Own Take After James Cameron Revised His Thoughts On AI In Hollywood

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The 2023 WGA Writers Strike shed light on the potential role of AI in the Hollywood industry. The union emphasized the necessity for performers to be shielded from their likenesses being exploited by AI technology without their approval, and the fear of studios substituting screenwriters with advanced tech to produce scripts. Following James Cameron’s shift in opinion regarding AI in Hollywood, Netflix’s Ted Sarandos shared his perspective on the matter.

James Cameron’s New Stance on AI in Hollywood

In the year 2023, during the SAG-AFTRA Strikes, James Cameron shared with CTV News that his warning about AI as a significant threat dates back to 1984. This warning was depicted in his movie, “The Terminator,” which portrayed the potential for AI power to surpass human control. However, during an interview with the “Boz to the Future” podcast this month, Cameron elaborated on why he finds AI crucial for the success of blockbuster films:

To ensure we can keep producing and watching the types of movies I’m passionate about – let’s call them sequels like Dune or my own films filled with grand visual effects and computer-generated imagery – it’s crucial that we find a way to reduce production costs by at least half.

The Canadian movie director is widely recognized for creating expensive films that both critics and viewers highly appreciate. As James Cameron consistently innovates technology in his blockbuster productions, he seems to have a good understanding of the financial aspects needed to introduce new technology in operation. It’s evident that the filmmaker behind “Titanic” holds a more optimistic perspective on AI, viewing it as an efficient and cost-effective method for movie production and accelerating visual effects.

Netflix Co-CEO Ted Sarandos’ View of AI in Hollywood

James Cameron views Artificial Intelligence (AI) as a method to reduce the high costs of blockbuster films, whereas Netflix Co-CEO Ted Sarandos envisions a different role for this technology. Unlike Cameron, Sarandos, during a 2025 Q1 Earnings Conference Call (via Seeking Alpha), expressed greater interest in AI improving the storytelling experience, rather than merely cutting costs.

I also went through the same article where Jim Cameron discusses reducing movie production costs by half. However, what intrigues me even more is the potential for improvement if we could enhance movies by just 10%. Currently, our team is leveraging AI technology to streamline various aspects such as set references, pre-visualization, VFX sequence preparation, shop planning, and many other tasks that ultimately improve the overall production process.

It appears that Netflix Co-CEO places greater emphasis on employing AI to aid in the creative process as opposed to cost reduction purposes. According to Ted Sarandos’ statements about talent using artificial intelligence, AI has been utilized to enhance content during pre-production by streamlining set design, scene planning, and visual effects.

During the conference call, Ted Sarandos discussed how Artificial Intelligence (AI) could shatter accessibility limitations in cutting-edge technologies, particularly in Visual Effects (VFX). This means that VFX capabilities, which were previously accessible only to big-budget filmmakers, might now be within reach for a broader range of creators.

Historically, it was primarily large-scale productions that could afford complex visual effects like de-aging. However, nowadays, with the advent of AI technology, such advanced visual effects are accessible for small-budget projects as well, allowing them to present high-end VFX on screen.

The Netflix Co-CEO is well-versed in the area of de-aging technology. The streaming service’s production of Martin Scorsese’s film The Irishman, for instance, showcased its remarkable de-aging technology to make Robert De Niro appear younger, instead of using separate actors for his younger counterparts. However, the budgeting for this gangster movie was quite substantial, estimated at around $159-$200 million. At present, only large studios can afford such cutting-edge technologies. Yet, Ted Sarandos anticipates that with the help of AI, even smaller-budget projects could achieve visual effects of similar caliber, such as de-aging techniques.

The American entrepreneur drew an analogy from the movie “Pedro Páramo” (available on your Netflix account) to illustrate how AI tools were employed in Rodrigo Prieto’s first directorial venture. Ted Sarandos pointed out that the Mexican filmmaker managed to utilize de-aging technology at a significantly lower cost compared to what was spent on it for “The Irishman.

With advanced technology now available, the same innovator is crafting outcomes that were inconceivable half a decade back. This fresh wave of cutting-edge tools presents an exhilarating prospect. Our primary goal revolves around harnessing Artificial Intelligence to enhance both the participant’s and developer’s journey.

Year by year, technology continues to expand at an impressive pace. It seems that Ted Sarandos views artificial intelligence as a valuable tool for both the subscribers who enjoy the content and the creators who produce it.

The perspectives of James Cameron and Ted Sarandos regarding AI within the movie industry seem to have contrasting focuses: Cameron emphasizes budgetary aspects while Sarandos leans more towards enhancing storytelling. Nevertheless, they share a common viewpoint that AI has the power to transform filmmaking as we know it.

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2025-04-18 20:40