Netflix to Launch AI Powered ads

With over 94 million monthly users, the streaming giant, Netflix, is planning to introduce AI-generated advertisements for its ad-supported subscription tier starting in 2026. They’re persistent that this will make them less irritating by making it look the part of the content you’re watching using artificial intelligence.

For instance, if someone is watching a cooking program, they might see ads for kitchen tools or food products. The AI will also use viewer data and past viewing habits to personalize the ads, potentially showing products that users have previously looked at or shown interest in.

These new AI-powered ads will include interactive features like one-click purchase or QR codes, aiming to get viewers more involved with the advertisements. They will appear during the regular ad breaks in the middle of content and also when a user pauses. Netflix has even shown an example of how a product image could be placed over a background inspired by a show like “Stranger Things,” and one thing that I can assure you is that it wasn’t as irritating as a normal ad.

The introduction of AI ads could have several wider effects. Netflix believes that by making ads more targeted and interactive, it can attract more advertisers and potentially double its advertising revenue next year. 

However, there’s a concern that these integrated ads could blur the line between the actual content and the advertisements, which might break the flow of content and affect how much viewers trust the platform. The presence of more engaging ads on the cheaper, ad-supported tier might also make the ad-free subscription option more appealing, so, a win-win for Netflix in the end.