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A photo of a Netflix office gettyimages.com / Mario Tama

Netflix will launch an AI animation studio — but 51% of people aren’t in favor of a future with generative AI content in it

Netflix is launching an animated AI studio, dubbed INKubator, aimed at producing AI generated content, according to both news reports (1) and recently published company job listings. (2)

INKubator, at least in the beginning, will seemingly focus on short-form animated content. But at least one job listing indicates the company has ambitions to expand its use of generative AI into long-form content, as well.

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According to Netflix, INKubator will be artist-focused and create an environment where artists can explore how new tools to enhance their storytelling. Netflix Animation Studios, launched in 2018, will continue using only traditional animation to produce its content.

Job postings on Netflix’s website show the company is looking to fill a handful of positions, including a head of technology, a software engineer, and a production supervisor. All roles listed on Netflix’s website are located in Los Angeles or Los Gatos, California.

Serrena Iyer, who has spent the last five years at Netflix, is now COO of INKubator as of March 2026, according to her LinkedIn profile. Iyer is also director of animated programming strategy and operations at the company. (3)

Netflix already uses AI in advertising and to serve you your next watch. (4) Earlier this year, it also acquired Ben Aflek’s AI startup InterPositive to use in post-production. (5)

Netflix has yet to publicly announce its INKubator plans. It’s also unclear how, if at all, its investment in short-form AI content will impact subscription prices in the future. Netflix has increased plan costs twice in the past year. (6)

The company did not respond to Moneywise’s request for comment on pricing and long-term content creation plans.

Are Netflix subscribers ready for AI generated content?

Many online commenting on the INKubator news are skeptical about Netflix’s foray into AI-generated content.

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One Reddit user in the subreddit r/AIwars wrote that if AI-generated content produced by INKubator is labeled as such, many Netflix subscribers will skip over it. (7)

Another jokingly commented: “In typical Netflix fashion, I expect really mind-blowing results, for two episodes. Then the signs someone stole the entire budget will start bleeding through.”

Over on X, the sentiment is largely the same. Many users call AI-generated content “AI Slop” and openly call for prioritizing “human talent.” (8) Others claim it only adds to the AI-generated content already posted on YouTube. (9)

But Netflix has made the move anticipating that there is a market for generative AI content. A June 2023 Mckinsey & Company study found AI generated content could add up to $4.4 trillion to the global economy across 63 use cases analyzed by the firm. (10) The media and entertainment industry stands to gain anywhere from $80 billion to $130 billion in value.

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Then, of course, there is the cost cutting opportunity generative AI presents. According to Morgan Stanley, generative AI can cut operational costs in TV and film by up to 30%, “while curation and personalization are likely to increase audiences’ engagement.” (11)

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Gen-AI content isn’t welcomed around the globe

Meltwater, a social listening platform, finds there has been growing concern over AI content online, with positive remarks about the technology dropping from 22% in the spring of 2025 to 17% in February 2026. (12)

The company released a joint study with YouGov last month, surveying over 1,000 people and analyzing their thoughts on AI, as well as the benefits and biggest drawbacks. Fifty-one percent of respondents said they are not excited about what the future looks like with generative AI in it. (13)

Among the biggest concerns are that generative AI content can lead to the production of fake news and scams, and that it will be difficult to tell if AI or a human created it. The biggest benefits include: faster content creation, coming up with new ideas when stuck, and creating multilingual content.

“YouGov’s data shows that the public is aware of a trade-off when it comes to generative AI’s use for content creation,” said Antony Cousins, EVP, product at Meltwater. “On one hand, the technology has the potential to make content creation faster, more accessible and more efficient. On the other hand, there are concerns about the risks it introduces — from misinformation and deception to the erosion of authenticity and human creativity.”

Perhaps more pertinent to Netflix, 53% of respondents are in favor of generated AI content in entertainment, though about two in five respondents are against it. Additionally, those surveyed are overwhelmingly uncomfortable with generative AI being used for video and audio creation.

Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.

The Verge (1); Netflix (2),(5); LinkedIn (3); AdWeek (4); Variety (6); Reddit (7); X (8), (9); Mckinsey & Company (10); Morgan Stanley (11); Meltwater (12); YouGov (13)

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Danni Santana Weekend editor

Danni Santana is a journalist based out of New York City with a decade of experience reporting and editing business stories about retail, restaurants, sports, and personal finance.

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