Netflix is set to introduce generative AI-powered advertisements within its ad-supported streaming tier by 2026. These innovative ads will seamlessly integrate branded content into the narratives of Netflix’s original shows and movies, enhancing viewer engagement without disrupting the viewing experience. For instance, during the company’s third Upfront event, Netflix showcased how a product image could be incorporated into a scene inspired by the popular series Stranger Things .
Subscribers to the ad-supported plan will encounter these AI-generated ads either during playback or when pausing a video. These ads may appear as overlays or include calls to action, providing a more immersive and contextually relevant advertising experience. Netflix plans to begin rolling out these features by the end of 2025, with full implementation expected by 2026 .
This move aligns with Netflix’s broader strategy to expand its advertising capabilities. By the end of 2025, the company intends to launch an in-house advertising technology platform, allowing for greater control over ad delivery and measurement. Currently, Netflix’s ad-supported tier boasts 40 million global monthly active users, a significant increase from 23 million in January 2024 .
While this initiative aims to enhance the viewer experience, it has sparked concerns among some subscribers who fear increased commercial interruptions. Netflix’s approach represents a significant shift in the streaming landscape, blending entertainment with personalized advertising through the power of generative AI.
