Netflix serves a fundamental human need (entertainment) that AGI won't eliminate, but AGI-generated content could radically reshape the competitive landscape, making Netflix's outcome dependent on whether it leads or follows the transition.
Netflix is the world's largest streaming entertainment service with over 300 million paid memberships in more than 190 countries. The company produces and licenses TV series, films, documentaries, and games delivered via its streaming platform. Netflix has evolved from a DVD-by-mail service to a streaming platform to a major global content studio, investing heavily in original programming. The company introduced an advertising-supported tier in 2022 and has expanded into live events and gaming.
Individual consumers and households worldwide who subscribe to the streaming service. The advertising tier also serves brand advertisers looking to reach Netflix's audience. Content is consumed across smart TVs, smartphones, tablets, laptops, and gaming consoles.
AGI could transform content creation, potentially enabling unlimited personalized content generation at near-zero marginal cost. This could undermine Netflix's competitive moat of expensive, high-quality original content. If anyone can generate feature-film-quality entertainment on demand, the value of a curated content library collapses. Conversely, AGI could dramatically reduce Netflix's content production costs. Customers are individual consumers seeking entertainment. The human desire for stories, drama, and entertainment is fundamental and AGI-resilient. However, the form of entertainment consumption could change radically — from passive streaming to interactive, personalized, AGI-generated experiences that Netflix may or may not be positioned to deliver.