Following the release of its financial details for Q2 2025, Netflix’s leadership discussed a number of topics on the company’s call with analysts, including its recent deal with French broadcaster TF1.
The company reported strong financial growth, with revenue increasing 16 per cent year-over-year to $11.079 billion in Q2 2025 as net income spiked by 46 per cent to $3.125 billion at the end of the quarter YoY. Netflix is no longer reporting subscriber numbers.
Discussing the reasoning behind Netflix’s decision to begin carrying linear and on-demand content from French TV network TF1, co-CEO Greg Peters said the fundamental purpose of the partnership is to widen the company’s breadth of content. “We consistently hear from our members that they want more. They want more variety, more breadth of content,” he said.
“How do we enhance the value we deliver to members? We want to provide more content, more variety, more quality. So just as you have seen us do with licensing and production, this is just another mechanism to expand that offering.”
Asked why TF1 over other broadcasters, Peters stated that the two partners “know each other really well” and the company wanted its first partner to be “in a big territory.”
“We wanted to be highly aligned in terms of the deal and the shape of the partnership and the values that we thought we could generate mutually by working together for our customers,” he continues. “We both look at this as an opportunity to learn, to figure out how we scale the local content that TF1 is producing to more customers in France. So we are looking forward to seeing what consumers think. You never really know until you get out there and get the real reactions. And then, obviously, we will factor that into our plans going forward.”
The call also covered the use of artificial intelligence with co-CEO Ted Sarandos stating Netflix see AI as “an incredible opportunity to help creators make films and series better, not just cheaper.”
Sarandos went on to reveal that the Argentinian science fiction show, El Eternauta (The Eternaut), leveraged virtual production and AI-powered VFX.
“There was a shot in the show that the creators wanted to show a building collapsing in Buenos Aires. So our iLIGHT team partnered with their creative team using AI-powered tools,” he explained. “That VFX sequence was completed 10 times faster than it could have been completed with visual, traditional VFX tools and workflows
“Also, the cost of it would just not have been feasible for a show in that budget. So that sequence actually is the very first GenAI final footage to appear on screen in a Netflix original series or film.”
Sarandos said that both Netflix, the show’s creators and the audience were “thrilled” with the results of the GenAI sequence. “I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting.”
