Netflix expects content spending to reach around $20 billion in 2026, an increase of roughly 10% on the previous year, as co-chief executive Ted Sarandos said generative AI is helping cut costs while improving output quality. Speaking after the company's second-quarter earnings, Sarandos said AI workflows had been used in around 300 Netflix productions, mostly in post-production, allowing scenes such as crowds or historical battles to be added that might otherwise have been unaffordable. The remarks came as Netflix sought to reassure investors following a mixed quarterly report that had unsettled Wall Street analysts.

Spending growth is accelerating from around 8% annual rises over the past five years, though it remains below the 14% average of the past decade, with live programming now accounting for about 5% of the total. Sarandos cited the documentary series The American Experiment, which used 17 minutes of AI-enhanced footage produced twice as fast and at half the cost of previous methods, with savings expected to be reinvested into further content. He also highlighted the growing role of live events, such as the Roast of Kevin Hart and the MLB Home Run Derby, alongside new ventures into vertical video, podcasts and publishing partnerships with Condé Nast, Hearst and People.