Netflix is set to introduce a TikTok-style vertical video feed within its apps this month and aims to extensively utilize AI for content creation and recommendations, the company announced on Thursday.
Netflix has been exploring a vertical video feed since last year. This short video feature may aid users in finding video podcasts, alongside its current lineup of shows and movies. Additionally, the company is intensifying its use of AI for recommendations following the launch of a ChatGPT-powered search feature last year.
“We have been in personalization and recommendation for two decades, but we still see tremendous room to make it better by leveraging newer technologies,” Netflix co-CEO Gregory Peters stated during the company’s first-quarter conference call. “Recommendation systems based on new model architectures not only improve current personalization but also let us iterate and improve more quickly—adding support for different content types much more efficiently.”
Co-CEO Ted Sarandos mentioned that he sees AI tools enhancing the entire content creation process. “In general, we expect GenAI to make content better; better tools, better processes […] It takes a great artist to make great art, and AI won’t change that. But AI will give those artists better tools to bring those visions to life,” he remarked.
Last month, Netflix acquired Ben Affleck’s AI creation company Interpositive, which, according to Sarandos, has attracted interest from creators.
“With our acquisition of Interpositive, we think it accelerates our GenAI capability because it is proprietary technology created specifically for filmmakers and filmmaking, different from 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 we are seeing momentum build around adoption,” he added.
Netflix also stated its goal to use AI to enhance its ad suite, enable new formats, and customize to achieve better returns, with expectations to generate $3 billion in ad revenue this year.
Netflix reported Q1 2026 revenue of $12.25 billion, up 16.2% year-on-year, with profits surging 83% to $5.28 billion. Accompanying the first-quarter results, Netflix announced that its co-founder and chair, Reed Hastings, will depart from the company’s board this summer.
Significantly, the company increased subscription prices in the U.S. late last month, which might positively influence the next quarter. Netflix stated it concluded 2025 with 325 million paying subscribers.