Netflix will introduce a new type of ad in 2026 that leverages generative AI.
Announced during its latest Upfront presentation, these new ads will be “midroll,” meaning they’ll run during content playback, and generative AI will be used to personalize them. This includes where they might be placed on the screen or whether they create an overlay. Netflix also says these ads can run either in the middle of streaming or when you press pause.
While some will no doubt scoff at the use of generative AI, it should be noted that they’re not actually creating images, which is a bit different than the way this tech is often used. On top of that, this will only apply to those on the streamer’s lowest ad-enabled tier, which costs $7.99. Those who pay extra to get an ad-free experience naturally won’t see any of this.
During the Upfront, Netflix’s president of advertising, Amy Reinhard, provided some interesting insights about ads on the platform. First, she noted that Netflix members “pay as much attention to midroll ads as they do to the shows and movies themselves.” On top of that, she said Netflix ad tier subscribers spend an average of 41 hours per month on the service.
And finally, the company confirmed during the Upfront that it’s reached 94 million ad tier members, a major leap from the 40 million it reported this time last year.
Via: Ars Technica
Correction: 16/05/2025 at 4:41 p.m. ET — This story previously mentioned that Netflix’s generative AI would create ads, including one with a Stranger Things background. However, this is incorrect — Netflix is using generative AI to personalize the experience surrounding ads. We’ve updated this story accordingly.
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