Netflix has raised concerns about the potential threat posed by generative artificial intelligence (AI) to its operations and competitive edge. The streaming giant expressed apprehension in its annual report filed with the US Securities and Exchange Commission (SEC), acknowledging the rapidly evolving landscape of technological developments.
The company highlighted that if competitors gain an advantage through the use of generative AI, it could adversely impact Netflix’s ability to compete effectively and result in negative impacts on its operations. Furthermore, Netflix pointed out the uncertainty surrounding intellectual property protection for AI-generated material, emphasizing the potential for increased exposure to intellectual property claims with the adoption of new technologies.
While the realm of generative AI-created entertainment is still in its early stages, the landscape is evolving rapidly. Recent reports indicate that readily available AI tools can suggest storylines, character arcs, and even generate dialogue. For instance, ChatGPT has demonstrated the ability to compose a basic script with just a few prompts.
Generative AI has already played a role in the production of the 2022 film ‘Everything Everywhere All at Once.’ The technology extends beyond written content, with reports indicating the existence of generative AI systems capable of creating videos. AI is also being employed to offer data-driven predictions about how unconventional storylines may impact viewers.
The concerns raised by Netflix align with broader industry discussions. In May of the previous year, the Writers Guild of America (WGA) initiated a strike over film and TV writers’ income from streaming services programming. One of the demands put forth by the WGA was for production companies to regulate the use of material produced using artificial intelligence or similar technologies.
As generative AI continues to advance, companies in the entertainment industry are grappling with the potential implications on creativity, intellectual property, and competition. Netflix’s cautionary stance reflects the growing recognition of the need to navigate these challenges in an ever-evolving technological landscape.
