Netflix (NASDAQ:NFLX)’s stock price has risen significantly over the past two years thanks to smart moves (an overhaul of its ad-based tier and freeloader) and its strong content pipeline. While it seems premature for Netflix to retreat again in the medium term, generative AI innovations like OpenAI Sora – a text-to-video generator that’s as impressive as it is terrifying in every way – have virtually no My opinion is that it has the potential to excite investors for unlimited returns. possibility.
For now, I remain bullish on Netflix as it continues to prove that it’s back on track, not only from a content production standpoint, but also in terms of introducing new technology.
Without a doubt, Sora offers a glimpse into the future of video. Only time will tell which steamers choose to follow her AI-enhanced video path. But it’s hard not to be excited about what such a product could do for the world’s largest video content production company.
At this time, we do not expect Netflix to make any announcements that it will begin producing its AI content pipeline. But years from now, when more guidelines are put in place to protect the public from the potential pitfalls of various generative AI technologies, I’m not the slightest bit surprised that Netflix explored the possibility of doing more than just toe-to-toe. I wouldn’t be surprised. In the waters of AI.
How will Netflix fare as we move further into the generative AI era?
It’s no wonder that Netflix is harnessing the power of AI to provide personalized recommendations to its valued users. How much more AI has to offer the streaming giant remains a big question that is sure to linger on investors’ minds for years to come. Either way, it’s clear that Netflix stands to benefit from the AI boom in many ways, along with its big tech rivals.
The disruptive potential of video generators like Sora would be impossible for major content creators to ignore. It remains to be seen whether video streamers consider incorporating similar technology as part of their content strategies.
Ultimately, it is the customer who decides whether the AI content (video, text, or audio) is successful.
Regarding that point, I think there is everytime No matter how great AI content gets from here, there needs to be a place for human stories. As such, any AI videos that may appear in the future are likely to be, at best, free short-form videos. In other words, generative AI is experimental and should be seen as an appetizer rather than the main course for streamers.
Personally, I think there would be too much backlash from customers if AI were too disruptive to Hollywood and content creators as a whole. As impressive as Sora looks, no matter how deep current and future AI products become, don’t expect humans to be replaced anytime soon or ever.
After all, no one wants their favorite video streaming platform to be filled with low-cost, AI-generated content, at least in my opinion. While I don’t think streamers (including Netflix) are going down the path of primarily serving AI content, AI is a potential opportunity for the company to reduce various behind-the-scenes costs without compromising human creativity. elements that I believe are. Consider the pre-production or post-production stages where generative AI tools can help enhance, optimize, and accelerate various aspects such as editing.
In many ways, AI has the potential to enhance human creativity, reduce production costs, and shorten the time it takes to create an episode of the next blockbuster show. In my humble opinion, when it comes to the streamer and the AI, he needs to create the next episode with a noticeable lack of humanity, rather than his dystopian scenario where one person types text prompts into his fields. I think that’s where we’re headed.
AI is getting smarter, but preserving human creativity is paramount
For now, generative AI appears to be in a “wild west” stage, with few, if any, notable regulations enacted by the federal government. Only time will tell what the fate of Sora and AI innovation will be. Either way, there’s no denying that the videos produced by Sora are incredibly good. Perhaps OpenAI ChatGPT represents the biggest leap forward in the field of AI since it surprised us just a year ago. In fact, AI-generated video has come a long way in just one year.
Just a year ago, AI-generated videos couldn’t fool anyone. Nowadays, it seems that it is becoming difficult to determine the authenticity of videos. This shows how fast AI is progressing. It’s an exponential speed rather than the linear speed that many of us humans are accustomed to.
In the meantime, don’t expect streamers (Netflix or any other group) to jump on the Sora bandwagon. For now, innovations like this are just food for thought for what the future of video will hold. did it And whether that’s the future we care about as content consumers.
Is NFLX stock a buy, according to analysts?
TipRanks ranks NFLX stock as a Strong Buy. Of the 41 analyst ratings, there are 27 buy recommendations, 3 hold recommendations, and 1 sell recommendation. NFLX’s average price target is $573.12, suggesting the stock is fairly valued. Analyst price targets range from a low of $375.00 per share to a high of $700.00 per share.
conclusion
Don’t expect Netflix or streamers to enter the space in a big way just yet, as companies are wary and regulations could be on the horizon that will hurt rapidly advancing generative AI. Moreover, it is the job of regulators and top content creators to ensure that the creative human spirit is not completely destroyed at the hands of AI technology.
For the most part, AI innovations play a background role, something that enhances the capabilities of human creators rather than taking their jobs and destroying the human creative spirit as we know it. I predict that it will be. For Netflix, providing creators with AI could be enough to propel its stock into the Magnificent Seven.
disclosure
