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Netflix Begins Using AI-Generated Ads

Netflix is the biggest streamer on the planet and only growing. They're pushing people to their ad-based service because it's cheap and brings in a ton of revenue for them. And now they're amping up their revenue by making the ads they use even cheaper.Netflix is going to use AI-generated ads in 2026. They'll play in the middle of episodes or movies, or any time the user presses pause and wants to restart. The twist here is that the ads will be tailored to the person, and Netflix will use generative AI for custom content targeted at each user. Amy Reinhard, Netflix's President of Advertising, claimed during their annual advertisers meeting that "[Netflix] members pay as much attention to mid-roll ads as they do to the shows and movies themselves."Netflix announced that its ad-supported plan now has 94 million global subscribers, up 34% from 70 million last November and more than double the 40 million from a year prior. This $7.99 monthly option currently represents 50% of all new Netflix subscribers.So it's a huge business. They want to make sure they keep profiting from it. Netflix's experimentation with AI isn't new. Just last month, it introduced an OpenAI-powered search feature for some regional users to discover content. While the idea of ads targeted to me sounds sort of interesting, the generative AI aspect is annoying. It's just a cheaper way to do things to maximize profits. I guess we should expect most businesses to aim that way, but if we...

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Published By: NoFilmSchool - Yesterday

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