Netflix Just Pulled a Sneaky Blinder

Last Thursday, whilst most of us were probably arguing about whether to watch another true crime documentary or rewatch The Office for the 47th time, Netflix dropped a bombshell that'll reshape how every film you watch gets made. And here's the kicker—they'd already done it months ago, and nobody noticed.

Picture this: You're watching an Argentinian sci-fi show called The Eternaut, buildings are collapsing dramatically in Buenos Aires, toxic snow is falling, and you're thinking "Bloody hell, these effects are decent for what's clearly not a Marvel budget." What you didn't know was that you'd just witnessed the future of filmmaking—and it was completely artificial.

The Confession That Changes Everything

During Netflix's earnings call, co-CEO Ted Sarandos casually revealed that The Eternaut contains "the very first AI final footage to appear on screen" in a Netflix original.

Not pre-visualisation. Not planning. Final footage. The building collapse you watched? Generated by AI in a fraction of the time traditional VFX would've taken.

"That VFX sequence was completed 10 times faster than it could have been completed with traditional VFX tools and workflows," Sarandos announced, practically beaming through the phone. "The cost of it just wouldn't have been feasible for a show in that budget."

Here's what should terrify and excite you in equal measure: nobody spotted it. The show's been streaming since April 2025, racking up a 96% rating on Rotten Tomatoes, and audiences have been none the wiser.

Why This Isn't Just About Netflix

Let's be brutally honest here. This announcement isn't Netflix showing off their latest tech toy—it's them drawing a line in the sand and daring every other studio to cross it. Sarandos declared that "AI represents an incredible opportunity to help creators make films and series better, not just cheaper."

But here's where it gets properly interesting. This isn't some massive blockbuster with a bottomless budget—The Eternaut is an Argentine production with local cast and crew, working within constraints that would make Hollywood accountants weep. Yet they've achieved effects that would've been impossible just months ago.

The implications are staggering:

• For smaller productions: Suddenly, ambitious sci-fi isn't the exclusive domain of Disney budgets. Independent creators can now access "advanced visual effects like de-aging" that were previously reserved for tentpole films.

• For global content: Netflix's international programming just got a massive upgrade. Stories from Argentina, Nigeria, or anywhere else can now compete visually with the biggest productions.

• For the industry: This is Netflix essentially saying "We've solved the VFX cost problem. What's your excuse now?"

  
  

The Trust Crisis Nobody's Talking About

But here's where this story takes a darker turn. Remember Disney's Secret Invasion? That show got absolutely slated for using obvious AI in its opening credits. The difference? We could see it was artificial.

The Eternaut represents something far more significant: the invisible integration of AI. As one observer noted, "Even after watching the AI-generated sequence myself, I'm not sure I would have noticed that it was made by AI unless I already knew to look for it."

This creates a fundamental trust crisis. If we can't distinguish between human creativity and machine generation, what does that mean for our relationship with media? Netflix has previously been accused of using AI in the true crime documentary What Jennifer Did—allegations they denied—but the very fact these debates are happening shows we're entering uncharted territory.

The Economics Are Undeniable

Let's talk numbers, because they're rather sobering. Netflix's Q2 revenue hit $11.08 billion, up 16% year-on-year. They can afford traditional VFX. This move isn't about desperation—it's about efficiency at scale.

Co-CEO Greg Peters revealed Netflix is deploying generative AI across multiple areas: personalisation, ad delivery, and even "interactive ads" coming later this year. They're building an AI-first content ecosystem, and The Eternaut was just the opening gambit.

When a company with Netflix's resources chooses AI over traditional methods—despite having the budget for both—that sends a clear message to every other studio watching: adapt or get left behind.

The Creative Paradox

Here's where this gets philosophically murky. The original El Eternauta comic, created by Héctor Germán Oesterheld in the 1950s, was renowned for its "thoughtful, detailed linework, all done with a purpose." Every line represented a human choice.

As one critic observed: "With an AI clip, details may only be there because that's what the model thinks scenes like that are supposed to look like."

This touches on something deeper than technical capability. When we watch a film, we're not just consuming content—we're experiencing human decision-making. The way a director frames a shot, the lighting choices, the emotional beats—these represent artistic intent. With AI-generated footage, we're left wondering: are we analysing creative choices or algorithmic patterns?

What This Means for You (Yes, You)

Whether you're a content creator, business owner, or simply someone who watches Netflix whilst eating takeaway on a Tuesday night, this affects you. Here's why:

• If you're a creator: The tools that were once exclusive to major studios are rapidly democratising. AI-powered visual effects mean your ambitious project doesn't need a Hollywood budget to compete visually.

• If you're in business: Netflix's approach—embracing AI to enhance rather than replace human creativity—offers a template. They're not firing VFX artists; they're giving them superpowers.

• If you're a viewer: You need to develop new media literacy skills. The line between human and artificial creativity is blurring so rapidly that we need frameworks for understanding what we're consuming.

  
  

The Bigger Picture

Industry insiders suggest this could "set a precedent for cost management in an era of rising production budgets." With YouTube now accounting for 12.5% of all US TV viewing compared to Netflix's 7.5%, traditional streaming platforms are under unprecedented pressure to deliver more content, faster, and cheaper.

Netflix's AI integration isn't just about The Eternaut—it's about survival in an attention economy where content is becoming commoditised. The question isn't whether other platforms will follow suit; it's how quickly they can adapt.

The Truth

Here's what nobody wants to admit: this was inevitable. The technology has advanced to the point where AI-generated content is "finally starting to become indistinguishable from human-made art". The only choice was whether studios would be transparent about using it.

Netflix chose transparency (eventually). They've positioned themselves as pioneers rather than sneaky adopters. Sarandos emphasised that "real people were doing real work with better tools," framing AI as enhancement rather than replacement.

Whether you buy that framing is up to you. But the cat's out of the bag now, and there's no putting it back.

What Happens Next

Netflix's success with The Eternaut "could accelerate AI adoption across the industry," according to industry observers. The platform is already experimenting with AI-powered search tools and content discovery.

The next phase will likely involve more ambitious AI integration: entire sequences, character interactions, even narrative elements. If you can generate a building collapse in minutes, what's stopping you from generating entire action sequences?

The Bottom Line

Netflix didn't just use AI to make a TV show—they demonstrated that artificial creativity has crossed the uncanny valley and emerged on the other side, indistinguishable from human work. The Eternaut proves we've entered an era where the question isn't "Can AI create convincing content?" but "Will we even know when it does?"

For creators, this is simultaneously liberating and terrifying. For viewers, it's a wake-up call about the nature of the content we consume. For the industry, it's a shot across the bow: evolve or become irrelevant.

The building collapse in The Eternaut wasn't just a plot device—it was a metaphor for the old ways of making content crumbling before our eyes. And most of us didn't even notice it happening.

The future of entertainment is being written by algorithms, and Netflix just proved we can't tell the difference. Whether that's brilliant or dystopian probably depends on whether you're holding the remote or the pink slip.

Key Sources:

• Netflix earnings call - Q2 2025 results

• TechCrunch: Netflix starts using GenAI in its shows and films

• Lifehacker: Netflix admitted to using generative AI in The Eternaut

• The Hollywood Reporter: Netflix's Ted Sarandos says AI will make movies "better, not just cheaper"

• TechRadar: Netflix uses generative AI VFX for the first time