Netflix Welcomes AI in Storytelling, Hollywood Eyes OpenAI's Sora 2
Netflix has expressed its enthusiasm for the potential of artificial intelligence (AI) in storytelling, as outlined in its recent shareholder letter. The streaming giant is not concerned about AI replacing creativity, but rather sees it as a tool to enhance it. Meanwhile, Hollywood is keeping a watchful eye on OpenAI's Sora 2 model due to initial concerns about copyright infringement.
Netflix Co-CEO Ted Sarandos has stated that AI will help tell stories better, faster, and in new ways. He is not worried about AI replacing creativity, but rather sees it as a means to create tools that aid creativity. Netflix is already leveraging AI and machine learning for various functions such as user interface fine-tuning, placing relevant ads, and localizing promotional assets.
Regarding generative video models like Sora 2, Sarandos believes they are more likely to draw audiences away from user-generated content than replace professionally produced series and films. He acknowledges that while AI content may replace viewing of existing user-generated content, it does not guarantee great storytelling. The music industry, with established artists like Taylor Swift remaining popular despite AI-generated music, serves as a leading indicator of AI's impact.
Hollywood has expressed concern about Sora 2 due to OpenAI's initial decision to force copyright holders to opt out of having their work used to train the model. Bryan Cranston, for instance, expressed concern about videos featuring him spreading across Sora 2 but appreciated the guardrails OpenAI has begun to erect.
Netflix believes it is well-positioned to leverage advances in AI due to its significant data assets and at-scale products and business processes. While the streaming giant is excited about the potential of AI in storytelling, it also acknowledges the need for responsible use and respect for creators' rights. As AI continues to evolve, Netflix and the entertainment industry at large will need to navigate its implications carefully.
