Netflix will introduce AI-powered, interactive advertisements to its basic package from 2026, which will not simply interrupt content but adapt to it. Amy Reinhard, head of Netflix's advertising business, announced at an event for advertising agencies that the company's in-house developed advertising technology is ready, and the next step is integrating generative AI.
American subscribers of the streaming giant currently watch Netflix for an average of 41 hours per month, with approximately 3 hours consisting of advertisements, while the ad-supported subscription model generates roughly 10 dollars in revenue per viewer monthly, compared to the ad-free 18-dollar package. Using artificial intelligence, advertisements will respond to viewer behaviour, selecting appropriate tone, timing and messaging, appearing during content playback and when users pause playback. According to Reinhard, users pay the same attention to in-programme advertisements as they do to the films or series themselves, although concrete data did not support this claim.
Netflix aims to double its advertising revenue by 2025, and while the function is already being tested in the United States, larger groups will only be involved later. The company's goal is for advertisements to fit into the content consumption experience and disturb it as little as possible. In contrast, the blurring of the boundary between content and commerce represents a concerning development for many.
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