In the latest episode of Denoised, hosts Addy Ghani and Joey Daoud dive into Netflix's strategic approach to AI integration, explore how audiences really feel about AI-generated content, and discuss Ryan Coogler's unexpected copyright deal that could influence future filmmaker negotiations.

Netflix Sees AI as a Quality Enhancer, Not Just a Cost-Cutter

During Netflix's Q1 earnings call, Ted Sarandos offered insights into how the streaming giant views artificial intelligence in their production workflow. When asked about AI's role in filmmaking—referencing James Cameron's comments about using AI to reduce costs by 50%—Sarandos presented a somewhat different perspective.

"I remain convinced that there's an even bigger opportunity if you can make movies 10% better and use AI to make movies 10% better," Sarandos stated during the call. He mentioned that Netflix's talent is already using AI tools for set references, previsualization, VFX sequence preparation, and shot planning—all processes that make production more efficient.

Sarandos specifically highlighted how AI has transformed the de-aging process. He referenced the significant improvement since The Irishman, noting that what was once "extremely cumbersome and expensive" five years ago can now be done in "a fraction of the time using AI-powered tools."

Addy Ghani, who has extensive experience in production technology, suggests the 10% efficiency figure is actually conservative: "The 10% number is such an understatement for an organization like Netflix. They can easily achieve a higher efficiency number with the in-house investment in AI that they already have."

The hosts discussed how AI could particularly benefit Netflix's reality programming, where multiple cameras capture enormous amounts of footage that needs to be sorted efficiently. Shows like Love Is Blind could see substantial workflow improvements through AI-assisted editing.

While VFX remains an area where the full potential of AI is still being determined, the hosts agree there's significant opportunity for efficiency gains in tedious work like rotoscoping and relighting.

Key takeaways from this discussion:

• Netflix views AI as both a cost-saving tool and a quality enhancer

• The streaming service is already incorporating AI into various production phases

• Reality programming with multiple camera setups stands to benefit significantly

• The focus is on integration into existing workflows rather than replacing creative talent

Another interesting revelation from the call: Netflix's most talked-about titles drive less than 1% of total viewing on the platform. This underscores the importance of their recommendation system and explains their need for a large, diverse content library to keep subscribers engaged between major releases.

AI Stories Pass the Blind Test: Content Quality vs. Perceived Bias

A recent study revealed an interesting disconnect between people's stated preferences and their actual evaluations of content. When directly asked, participants overwhelmingly said they would prefer human-written short stories over AI-generated ones. However, in blind tests where participants weren't told which stories were created by humans and which by AI, they couldn't reliably distinguish between them and showed no consistent preference.

This finding highlights the current negative bias many people hold against AI-created content when they're aware of its origin. Joey observes: "It just feels like this negative bias around anytime people hear something like 'AI was used in something.'" He references past controversies like The Brutalist and its use of Respeecher technology, where the mere mention of AI involvement triggered backlash.

Both hosts suggest this could lead companies to continue experimenting with AI tools while being less forthcoming about their use to avoid negative reactions. "Why are they gonna talk about it if people have a very little understanding of how this stuff actually works?" Joey points out.

The hosts also discuss the need for better terminology to distinguish between different applications of AI in creative work:

• AI-generated content that's entirely machine-created

• AI tools used for specific tasks like rotoscoping or speech modification

• AI assistance for visual effects that would otherwise be prohibitively expensive for smaller productions

For independent filmmakers especially, AI often isn't replacing jobs that would have existed otherwise—it's enabling creative choices that budget constraints would have made impossible. As Joey explains: "A lot of times it's not like, 'Oh, are we using AI or are we gonna hire someone?' A lot of times there is no money to hire someone. So it's either we don't do it at all, or we use AI."

Addy compares this to Robert Rodriguez making El Mariachi on a $7,000 budget: "You have indie filmmakers that are literally put into a corner. They either make this movie in general or it doesn't exist."

Ryan Coogler's Landmark Copyright Deal Could Reshape Hollywood Contracts

Ryan Coogler's contract with Warner Bros. for Sinners includes an unusual provision: the copyright for the movie will revert back to Coogler after 25 years. This type of arrangement is extremely rare in Hollywood, where studios traditionally maintain perpetual ownership of their films to build valuable content libraries.

"There are a handful of people, I think Tarantino had some early deals with Miramax," Joey notes, "but besides that, extremely rare." The hosts emphasize that this reflects both Coogler's exceptional status as a filmmaker and Warner Bros.' need for a successful film in the current challenging environment.

After directing hits like Black Panther, Black Panther: Wakanda Forever, and Creed, Coogler has established himself as one of the industry's most valuable directors. As Addy puts it: "There's only a few people on the planet like Denis Villeneuve and just a few filmmakers that could really command this level of control from the studios."

The hosts compare this to George Lucas retaining merchandising rights to Star Wars—a decision that seemed inconsequential to studios at the time but later proved enormously valuable.

This deal may also signal broader changes in how studios negotiate with talent, particularly as more creators come from independent backgrounds with established ownership of their brands. Joey wonders how this might influence future deals with creator-entrepreneurs like MrBeast or Ms. Rachel when they work with traditional studios.

Industry implications:

• This deal demonstrates studios' flexibility in the current environment

• While not widely applicable to most filmmakers, it may influence future talent negotiations

• It reflects shifting power dynamics between established creators and traditional studios

• The 25-year timeframe suggests studios value immediate returns over long-term library assets

The hosts note that such a deal would have been "impossible in the 80s and 90s" when theatrical windows and home video created more consistent long-term revenue. Today's compressed release schedules and uncertain digital future make studios more willing to prioritize immediate benefits.

Conclusion

This episode of Denoised highlights how AI is being practically integrated into existing production workflows, challenging assumptions about audience perceptions of AI-created content, and documenting shifts in traditional industry power structures through deals like Coogler's.

As Addy summarizes: "The industry is truly changing from underneath, like the building blocks of what makes a Hollywood studio run and how the deals are done, and how it's made. Everything is in flux, which means you should be really dynamic as well and be aware of what the big moves are."

For media professionals, this period of transition presents both challenges and opportunities. Those willing to adapt, learn new tools, and understand the evolving landscape will be positioned to thrive in the next iteration of entertainment production.