Netflix goes to launch a TikTok-like vertical video feed inside its apps this month, and plans to make use of AI broadly for content material creation and suggestions, the corporate mentioned on Thursday.
Netflix has been testing a vertical video feed since final yr. The brief video function may help customers with discovering video podcasts, together with the present slate of exhibits and flicks. The corporate can also be leaning extra into utilizing AI for suggestions after launching a ChatGPT-powered search function final yr.
“We have now been in personalization and suggestion for twenty years, however we nonetheless see great room to make it higher by leveraging newer applied sciences,” Netflix co-CEO Gregory Peters mentioned in the course of the firm’s first-quarter conference call. “Suggestion programs based mostly on new mannequin architectures not solely enhance present personalization but in addition allow us to iterate and enhance extra shortly — including help for various content material sorts far more effectively.”
Co-CEO Ted Sarandos mentioned he sees AI instruments enhancing the complete content material creation course of. “Typically, we anticipate GenAI to make content material higher; higher instruments, higher processes […] It takes an amazing artist to make nice artwork, and AI gained’t change that. However AI will give these artists higher instruments to deliver these visions to life,” he mentioned.
Final month, Netflix purchased Ben Affleck’s AI creation firm InterPositive, which, Sarandos mentioned, has garnered curiosity from creators.
“With our acquisition of InterPositive, we predict it accelerates our GenAI functionality as a result of it’s proprietary expertise created particularly for filmmakers and filmmaking, completely different from different GenAI video functions. Whereas our possession of InterPositive may be very new, we’ve generated curiosity with creators who’ve frolicked with the instruments, and we’re seeing momentum construct round adoption,” he famous.
Netflix additionally talked about that it desires to make use of AI to enhance its advert suite, and permit for brand new codecs and customization to get higher returns. The corporate expects to generate advert income of $3 billion this yr.
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Netflix reported income of $12.25 billion in Q1 2026, up 16.2% year-year-year, and mentioned revenue jumped 83% to $5.28 billion. Alongside the first-quarter outcomes, Netflix mentioned its co-founder and chair, Reed Hastings, is leaving the corporate’s board this summer season.
Notably, the corporate hiked subscription costs within the U.S. late final month, which may have a optimistic affect subsequent quarter. The corporate mentioned it ended 2025 with 325 million paying subscribers.
