Netflix has announced plans to introduce AI-generated advertising, including pause ads, into its programming on the ad-supported tier starting in 2026. This development, first reported by Media Play News, raises questions about how these ads will be targeted to viewers. Will they be personalized based on watch history or tailored to the content being watched at the time? Currently, there is little information available on the backend mechanics or the presentation of these ads, but their arrival is confirmed.
Amy Reinhard, President of Advertising at Netflix, recently shared insights into the company's strategy at the Upfront for advertisers event in New York City. She emphasized Netflix's unique blend of technological prowess and entertainment excellence. "Either they have great technology, or they have great entertainment," Reinhard stated. "Our superpower has always been the fact that we have both."
Reinhard also highlighted the effectiveness of Netflix's ad-supported model, noting that attention levels for mid-roll ads are comparable to those for the shows and movies themselves. She pointed out that subscribers on the ad-supported tier watch an average of 41 hours of Netflix per month. According to Kotaku, this translates to approximately three hours of ads per month for these viewers, a significant amount even without AI enhancement. However, starting in 2026, these ads will indeed be powered by AI.
As of now, Netflix has not provided an official implementation date for this change, leaving viewers and advertisers alike in anticipation of further details.