Netflix’s AI and Anime Strategy May Redefine Streaming Globally

• Netflix earned $11.51B USD in quarterly revenue, and will integrate Gen-AI tools to boost efficient and creative production.
• 150M+ subscribers watch anime, contributing to a 4.4B-hour viewership growth and over $2B USD in anime streaming revenue.
• Netflix aims for a balanced AI approach, prioritizing originality while ethically using AI for animation, localization, and production design.

Netflix, Inc. is clearly positioning itself to ride on the twin waves of Gen-AI tools and anime viewership. In its letter to investors, the streaming giant said that it is “very well positioned to effectively leverage ongoing advances in AI.” In the latest earnings data, Netflix reportedly earned a quarterly revenue of $11.51 billion USD with an annual increase of approximately 17%.

As per reports by Tech Crunch, CEO Ted Sarandos said, “It takes a great artist to make something great,” clearly eyeing growth with these opportunities. He further stated, “AI can give creatives better tools to enhance their overall TV/movie experience for our members, but it doesn’t automatically make you a great storyteller if you’re not.”

The Convergence of AI and Anime: A Production Asset

Netflix has also used generative AI in its Argentine show The Eternaut to create a collapsing-building scene. It has also used Gen AI projects such as Happy Gilmore 2 to make the characters appear younger and Billionaires' Bunker to help design the set and wardrobe.

The use of AI, the fact that Netflix too aims to use it, also highlights broader industry concerns about AI's role in storytelling, possible job cuts, and the exploitation of intellectual property in training data. The streaming giant emphasized on the use of AI as a tool instead of an alternative, stating that it is "all in on that, but we're not chasing novelty for novelty's sake here," implying an equitable strategy that favors efficiency and inventiveness while prioritizing human artistry. 

Apart from AI, Netflix is also expanding its anime department, reflecting how rapidly the streamer is escalating the stakes. As per The Hollywood Reporter, Netflix's anime content was viewed over 1 billion times worldwide. Parrot Analytics also said that Netflix garnered $2.07B USD in anime streaming revenue in 2023. In fact, Netflix subscribers have watched 4.4B hours of anime in the first half of 2025. This is an 11.3% increase over the previous six months, which is almost ten times the growth of the other genres. 

Netflix's Ethical Approach to Balance Creativity and AI Use

Over 150M subscribers watch anime, and ethical AI-use might just improve animation, localization, and design, lowering costs and increasing output. However, the challenge that lies ahead is balancing ethics and efficiency, along with the responsible use of AI, which also preserves originality. 

If performed well, this strategy might help Netflix profit on the anime boom, which is expected to reach approximately $68.7B USD by 2032, reports Yahoo Finance. This will also establish an example for how technology and creativity may support one another.