Netflix is set to launch a TikTok-style vertical video stream within its apps this month and plans to use artificial intelligence widely for content creation and recommendations, the company said Thursday.
Netflix has been testing a vertical video stream since last year. The short video feature could help users discover video podcasts, along with their current stream of shows and movies. The company is also leaning more towards using AI for recommendations after launching a ChatGPT-powered search feature last year.
“We’ve been in personalization and recommendations for two decades, but we still see huge room to make it better by leveraging newer technologies,” Netflix co-CEO Gregory Peters said during the company’s presentation. first quarter teleconference. “Recommender systems based on new model architectures not only improve current personalization, but also allow us to iterate and improve faster — adding support for different types of content much more efficiently.”
Co-CEO Ted Sarandos said he sees AI tools improving the entire content creation process. “Overall, we expect GenAI to improve content; better tools, better processes […] It takes a great artist to make great art, and AI won’t change that. But artificial intelligence will give these artists better tools to bring those visions to life,” he said.
Last month, Netflix bought Ben Affleck’s AI creation company InterPositive, which Sarandos said has garnered interest from creators.
“With the acquisition of InterPositive, we believe it accelerates our GenAI capabilities because it is proprietary technology built specifically for filmmakers and feature films, unlike other GenAI video applications. While our ownership of InterPositive is very new, we have generated interest with creators who have spent time with the tools and are not seeing adoption momentum.”
Netflix also said it wants to use artificial intelligence to improve its ad suite and enable new formats and customization to get better returns. The company expects to generate $3 billion in ad revenue this year.
Techcrunch event
San Francisco, California
|
13-15 October 2026
Netflix reported revenue of $12.25 billion in Q1 2026, up 16.2% year-over-year, and said profits rose 83% to $5.28 billion. Alongside its first-quarter results, Netflix said its co-founder and chairman Reed Hastings is stepping down from the company’s board this summer.
Notably, the company raised subscription prices in the US late last month, which could have a positive impact next quarter. The company said it closed 2025 with 325 million paying subscribers.
