Netflix Doubles Down on Generative AI With Adverts in the Middle of Streams

Streaming media juggernaut Netflix has announced plans to use generative AI to deploy interactive adverts to subscribers within streams on its platform.

According to a report in industry trade publication Media Play News, Netflix plans to deploy generative AI across its midroll and pause ad formats, starting next year.

The streamer, which launched its own in-house ad platform earlier this year, said it was working towards more “creative” ads from its in-house team, thanks to the use of new ad tech that it is still working on.

Trade paper The Hollywood Reporter reported that the new ad product would use generative AI to associate advertiser copy and adverts with relevant programming on its service.

The ads will be restricted to subscribers on Netflix’s most affordable tier, which uses an ad-supported model that launched in 2022. There are currently 94 million subscribers at this level worldwide, of the 300 million total subscribers Netflix reported in its Q4 2024 earnings.

Amy Reinhard, president of advertising at Netflix, claimed that Netflix subscribers “pay as much attention to midroll ads as they do to the shows and movies themselves.” She added that the streaming service has “the most engaged audience anywhere,” with ad-supported subscribers spending an average of 41 hours a month on the platform.

Decrypt has reached out to Netflix for comment, and will update this article should they respond.

This isn’t the company’s first use of generative AI; earlier this month it announced a partnership with ChatGPT creator OpenAI to develop an AI-powered search feature that will enable viewers to request personalized recommendations using natural language.

Advertising and AI

Like many creative industries, advertisers have been grappling with the emergence of generative AI and its implications.

British broadcaster ITV, for example, has rolled out a generative AI ad production service intended to “make advertising more accessible to small businesses.” Last year, the BBC announced plans to use AI to create marketing materials for sci-fi show “Doctor Who,” only to abandon them in the face of complaints from viewers.

Netflix plans to roll out the new AI-generated ads in 2026 to all countries that offer its ad-supported subscription plan.

Expect to see plenty of testing before then, as Netflix aims to double its ad revenue in 2025.

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