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Welcome to VP Land! Netflix is taking a proactive stance on generative AI, rolling out comprehensive guidelines for its use in content production. Will these rules influence how other major studios integrate AI into their own workflows?

Last week’s poll ended in a tie between Vu’s new tech and Runway’s Game Worlds + third-party model integration as the top creative news that got you hyped. Check out today’s poll below.

In today's edition:

  • Netflix outlines generative AI production guidelines

  • Adobe Illustrator introduces 3D rotation for vector graphics

  • Meta licenses Midjourney's AI image tech

  • Interview with Fabula VP on AI

Netflix Sets GenAI Production Guidelines

Netflix has established comprehensive guidelines for using generative AI in content production, setting the stage for industry standards for the responsible adoption of AI. The streaming giant's approach strikes a balance between creative innovation, legal protection, talent rights, and audience trust.

Guiding Principles

At the core, Netflix sets three clear boundaries for GenAI use:

  • No replication of copyrighted or unowned material. AI outputs must not substantially recreate identifiable works or likenesses without rights or permission.

  • No training on production data. The tools used must not store, reuse, or learn from Netflix’s inputs or outputs.

  • No replacement of talent without consent. GenAI cannot be used to replace or generate performances covered by unions or belonging to individuals without explicit agreement.

For Props, Prominence Matters

Netflix distinguishes between background props and key visuals:

  • Incidental use, like a background prop or document that appears briefly, may not require full clearance.

  • Prominent elements that influence the story—such as a featured prop document—must undergo legal review and include meaningful human involvement in the final version.

Vendor and Workflow Expectations

For outside partners and vendors, the standards apply across the board. If custom GenAI pipelines or multiple tools are used, every stage must comply with Netflix’s rules on data protection, consent, and content authenticity.

The Bottom Line

Netflix isn’t banning GenAI, but it’s drawing a firm line around how the technology can and cannot be used. The emphasis is on protecting rights, preventing misrepresentation, and preserving human creativity. We'll keep an eye out for how other studios issue their own guidelines.

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Adobe Illustrator Adds Live 3D Rotation

Adobe launched a new 3D rotation tool in Illustrator that lets you spin 2D vector graphics into 3D space with live lighting controls. The Motion Mondays breakdown shows how this feature bridges traditional vector design with lightweight 3D visualization.

  • You can now rotate any 2D graphic in 3D space directly within Illustrator, adding dynamic perspectives without switching to complex 3D software.

  • Live lighting controls let you adjust direction, intensity, and shadow softness in real-time, bringing photorealistic depth to vector artwork.

  • The tool integrates with Adobe's Substance 3D suite, so you can apply detailed textures and materials to create consistent visual fidelity across projects.

  • AI-powered features like generative fill and enhanced image trace work alongside the 3D tools, letting you create vector backgrounds and patterns from text prompts.

Meta Partners with Midjourney for AI Visuals

Meta has partnered with Midjourney to license the startup's AI image and video generation technology for integration into Facebook, Instagram, and other Meta products. The licensing agreement aims to enhance Meta's creative tools and compete directly with OpenAI and Google's generative AI models.

  • Meta will gain access to Midjourney's aesthetic technology through formal licensing and technical collaboration between research teams.

  • The partnership addresses Meta's previous shortcomings in visual generative AI, helping the company leapfrog competitors who have gained momentum in this space.

  • Integration is expected to bring new creative tools and features to Meta's platforms, potentially reducing content creation costs while boosting engagement and ad revenue.

  • Midjourney was reportedly generating $200 million in revenue by 2023 through subscriptions ranging from $10 to $120 per month.

  • Meta appears undeterred by ongoing studio lawsuits against Midjourney, which center on the AI model generating images that closely resemble copyrighted characters, rather than on the data used to train the model.

Fabula’s Andrew Hevia, in an interview for our Inside the AI Studio series filmed at AI on the Lot, shares how the team is partnering with Runway to integrate AI across the filmmaking pipeline—accelerating VFX, lowering costs, and enhancing creative flexibility—while reflecting on how shifts in global storytelling are opening new doors for smaller production teams.

Stories, projects, and links that caught our attention from around the web:

📺 Netflix has partnered with YouTuber Mark Rober for a brand-new series highlighting his engineering stunts and viral builds.

🎤 Animated feature KPop Demon Hunters ranks among Netflix’s most popular theatrical releases ever, earning an estimated $18 million during its opening weekend. 

🍿 Netflix House will launch later this year in Pennsylvania and Dallas, offering immersive show-themed experiences, dining, and retail.

🎞️ Lucasfilm pioneered the EditDroid non-linear editing system in the 1980s, aiming to reshape film post-production, but it was eventually overshadowed by competitors and discontinued. Hey Eddie's blog has the story.

Addy and Joey break down the latest AI creative updates—from Alibaba’s open-source image editor Qwen and Runway’s platform updates (including Veo 3 integration), to new AI audio tools.

Read the show notes or watch the full episode.

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