Streaming giant Netflix has announced (via Engadget) that it will be introducing AI-generated ads to its service as early as 2026. The new format will feature ads during pauses or in the middle of content for users who have opted into an ad-supported plan. The company says this will make ads less intrusive and more natural for viewers.
During the Netflix Upfront event for its advertisers, the company's president of advertising, Amy Reinhard, announced interactive ad formats that use generative artificial intelligence to insert ads into personalized content. They will be implemented through its own advertising platform, Netflix Ads Suite.
Reinhard said that the number of users who chose the ad-supported plan reached 94 million per month, up 34% from November 2024. This indicates the growing popularity of the ad-supported model among viewers, who she said spend 41 hours a month on Netflix.
Netflix has already experimented with AI, including launching a content search feature powered by OpenAI, and the company is expected to continue expanding its use of AI across its services.
Users who don't want to see ads can upgrade to more expensive plans, but Netflix is gradually increasing the cost of its subscription, which may force more people to choose the ad-supported option.