Streaming giant Netflix is set to increase its investment in new programming and AI in a bid to reignite growth. The news comes amid concerns over a slowdown in subscriber engagement plus rising competition from rival streamers and alternative entertainment platforms. 

The company will use AI across its business, including to improve content recommendations, search, and production workflows. The aim is to not only make it easier for creators to produce shows and films but also more efficient for viewers to discover content. 

Generative AI technology has already been used for around 300 Netflix titles to date, mainly during post-production, including for visual effects, crowd scenes and complex production sequences.

According to Netflix, AI is helping to reduce production costs and shorten timelines, which means the company and its production partners can create visual effects and scenes it might not otherwise be able to offer, due to cost, difficulty levels and time. 

The streaming company is also increasing its investment in content. Executives are reportedly focused on delivering more high-quality films, series’ and new formats to engage audiences in what is an increasingly competitive market.

Netflix plans to continue live programming.

The formats Netflix is set to continue to explore include live programming, video podcasts, short-form content and other formats in a bid to compete with platforms such as YouTube. 

Investors are maintaining a key focus on Netflix’s engagement levels, with the streamer reporting growth in viewing hours but facing concerns on whether audience growth can continue at previous levels. The company reported more than 97 billion hours of viewing in the June quarter, representing growth of around 2% compared with the same period a year earlier.

Netflix plans to further target the expansion of its ad-supported business as advertising continues to become a larger growth driver beyond subscription price increases. Greater emphasis on international content will also continue and is expected to contribute significantly to viewing numbers. Non-English language production occurs in markets including Korea, Japan, Spain and India.