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Netflix has announced plans to integrate a vertical video feed similar to TikTok into its apps, as well as significantly expand the use of artificial intelligence for both recommendations and content creation.
The company has been testing a vertical format for short videos since last year. The new feature is expected to help users find video podcasts easier, as well as discover TV series and movies that are already available in the catalog. At the same time, Netflix is strengthening the role of AI in recommendation systems after launching ChatGPT-based search last year.
According to co-CEO Gregory Peters, the company has been working on personalization and recommendations for almost two decades, but still sees significant potential for its improvement with the latest technologies. “Recommendation systems based on new model architectures not only improve existing personalization, but also allow us to improve them faster by adding support for different types of content much more efficiently,” he said during a teleconference on the company’s Q1 results.
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Another co-CEO of Netflix, Ted Sarandos, emphasized that tools based on generative AI can positively influence the entire content creation process. According to him, such technologies will not replace artists, but will provide them with more advanced tools to realize creative ideas and improve the final result.
Last month, the company acquired Interpositive, an AI startup founded by Ben Affleck. Sarandos emphasized that this deal could significantly accelerate the development of Netflix’s generative AI capabilities, as it is about proprietary technologies specifically designed for the film industry. He also noted that Interpositive tools are already attracting interest among content creators, and their implementation is gradually gaining momentum.
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Besides, Netflix plans to use AI to improve the advertising platform, opening up opportunities for new formats and more flexible personalization, which should increase the effectiveness of advertising. The company expects to generate about $3 billion in advertising revenue this year.
The financial results for the first quarter of 2026 also show growth: Netflix ‘s revenue reached $12.25 billion, up 16.2% year-on-year, and profit increased by 83% to $5.28 billion. Simultaneously with the publication of the reports, it became known that co-founder and chairman of the board of directors Reed Hastings will leave his position in the summer.
It is worth noting that at the end of last month, the company raised its subscription prices in the US, which may have a positive impact on the financial performance of the next quarter. As of the end of 2025, Netflix had 325 million paid users.
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