Netflix is revolutionizing how we view advertisements. Beginning in 2026, the world’s largest streaming platform will incorporate AI-generated ads. The ads will not simply be random. Instead, they will be created through generative AI and tailored to each viewer. So what you see could differ from what another person sees, even if you are watching the same program.
Currently, Netflix is heavily promoting its ad-supported option. Why? Because it generates a lot of revenue. Now, they are finding a means of making that business even more affordable. By utilizing AI-generated ads, they will save on production while still making money from advertisers.
Amy Reinhard, Netflix’s President of Advertising, stated that users notice mid-roll advertisements as much as they see actual content. That is likely why Netflix will display these AI-generated ads in the middle of a show or a film, and when you pause and resume watching.
Why Netflix No Longer Wants Human-Made Ads?
In only a year, Netflix’s ad-supported tier has expanded rapidly. Last November, it had 70 million subscribers. Now, it has 94 million worldwide subscribers, an increase of 34 percent. And the figure is even greater compared to last year’s 40 million. The plan costs $7.99 monthly and accounts for 50 percent of total new subscriptions. You do the math. This action demonstrates how committed Netflix is to making its ad business a serious moneymaker. And they are pulling out every trick they have, including artificial intelligence.
But this is not the first time Netflix has tried using AI. Last month, they rolled out an AI-based search function, developed with OpenAI, for a limited number of members in specific areas. It is designed to help people discover shows more easily.
However, this next phase, using AI to create ads, is another order of magnitude. These advertisements will be created by machines, not humans. And while they will be tailored to respond to each user’s tastes, it just does not feel as personal in some odd way.
Final Thoughts
I’m ambivalent. Targeted advertising that interests me is preferable to unwanted, dull ads. However, finding out that AI produces these for cost-cutting purposes does not feel right. It is like another aspect of entertainment is being outsourced to machines.
I understand that businesses need to be more efficient, but I would like ads to have a touch of human imagination. It makes the entire experience feel more authentic. If I had to sit through ads, I would prefer that they be made by real people, not just smart software trying to guess what I want.
[via nofilmschool]
