Netflix is set to roll out a TikTok-inspired vertical video feed this month, signaling a major shift in how users discover content. Alongside this interface update, the streaming giant announced on Thursday that it is aggressively integrating artificial intelligence into both its recommendation engines and the content production pipeline.
A New Way to Discover Content
Having tested the vertical video feature since last year, Netflix aims to streamline content discovery. This short-form feed is designed to help users navigate video podcasts, as well as the platform’s existing library of movies and series. The move follows the company’s recent integration of a ChatGPT-powered search feature, marking a broader transition toward AI-driven user experiences.
AI-Driven Personalization
During the company’s first-quarter conference call, co-CEO Gregory Peters emphasized that while Netflix has led the industry in personalization for two decades, new technology offers significant room for improvement. “Recommendation systems based on new model architectures not only improve current personalization but also let us iterate and improve more quickly — adding support for different content types much more efficiently,” Peters stated.
Transforming Content Creation
Co-CEO Ted Sarandos highlighted that generative AI is expected to enhance the entire filmmaking process. “In general, we expect GenAI to make content better; better tools, better processes. It takes a great artist to make great art, and AI won’t change that. But AI will give those artists better tools to bring those visions to life,” Sarandos noted.
This strategy was underscored by last month’s acquisition of InterPositive, an AI startup founded by Ben Affleck. According to Sarandos, the technology is tailored specifically for filmmakers, setting it apart from generic AI video applications. “With our acquisition of InterPositive, we think it accelerates our GenAI capability… we are seeing momentum build around adoption,” he added.
Ad Revenue and Financial Growth
Beyond content, Netflix is leveraging AI to optimize its advertising suite, aiming for higher returns through customization and new ad formats. The company projects $3 billion in ad revenue for the current year.
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Financially, Netflix reported $12.25 billion in revenue for Q1 2026, a 16.2% year-over-year increase, with profits soaring 83% to $5.28 billion. Amid these results, the company confirmed that co-founder and chair Reed Hastings will step down from the board this summer.
The company also noted a recent price hike for U.S. subscriptions, which is expected to bolster earnings in the coming quarter. Netflix concluded 2025 with a total of 325 million paying subscribers.
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