Netflix Plans AI-Generated Ad Breaks by 2026

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Netflix Plans AI-Generated Ad Breaks by 2026

May 20,25(2 months ago)

Netflix has announced plans to introduce AI-generated advertising, including pause ads, within its programming on the ad-supported tier starting in 2026. This news, first reported by Media Play News, leaves many questions unanswered about the specifics of how these ads will be targeted. Will they be personalized based on viewers' watch history or tailored to the content being watched at the time? Currently, the details on how these ads will function behind the scenes or be presented to viewers remain largely undisclosed.

During the recent Upfront for advertisers event in New York City, Amy Reinhard, President of Advertising at Netflix, shed light on the company's vision. She emphasized Netflix's unique position, stating, "Either they have great technology, or they have great entertainment. Our superpower has always been the fact that we have both." Reinhard highlighted the effectiveness of their ad strategy, noting that viewers on the ad-supported tier pay as much attention to mid-roll ads as they do to the shows and movies themselves. She also revealed that these subscribers watch an average of 41 hours of Netflix per month, which translates to roughly three hours of ads per month.

While the exact implementation date for this change has not been specified by Netflix, the move towards AI-generated advertising marks a significant shift in how the platform will engage its ad-supported audience.

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