Netflix (NFLX, may be less vulnerable to artificial intelligence disruption than many firms but its greater risk could be changed viewing patterns.
Netflix co-founder Reed Hastings said the entertainment industry will likely be one of the least disrupted sectors because customers care about human conflict, live rivalry and actual performances.
The least affected, I think, will be entertainment, Hastings said on the Possible podcast. You’re not going to watch a basketball game of robots.
Hastings stated there could still be savings from AI in production costs such as visual effects and post-production expenditures.
Netflix has made a similar argument. In 2024, Co-CEO Ted Sarandos said he doesn’t see AI being able to write a better screenplay than a brilliant writer, or replace a great performer.
The bigger question is whether younger consumers still watch long-form movies and programs, or whether they are spending more time on short-form media.
Netflix is already answering. The corporation is adding vertical video segments to its mobile app to boost discovery and fight for mobile attention.
Netflix reported first-quarter revenue of $12.25 billion, a 16% rise from the same period last year. The company maintained its revenue guidance for 2026 at $50.7 billion to $51.7 billion.
For investors, Hastings’ comments bolster the idea that Netflix’s fundamental product is not as easy to automate. The real question is whether Netflix can hold on to attention as entertainment gets shorter and more mobile-first.
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