Netflix is set to introduce a vertical video feed similar to TikTok on its apps this month, alongside plans for a wider integration of artificial intelligence (AI) in its recommendation systems, content creation pipeline, and advertising operations.
The streaming platform has been experimenting with the vertical video feature since the previous year. This new feed aims to enhance users’ content discovery experience, showcasing video podcasts in addition to its extensive collection of shows and movies.
During the first-quarter earnings call, Co-CEO Gregory Peters highlighted Netflix’s commitment to enhancing personalization and recommendation capabilities through advanced AI models. These systems are expected to enable faster iterations and more efficient support for various content formats.
Co-CEO Ted Sarandos expressed optimism about the potential of generative AI to enhance content creation tools and processes while emphasizing the continued importance of skilled artists in the production process.
In a recent move, Netflix acquired the AI filmmaking company Interpositive founded by filmmaker Ben Affleck. Sarandos emphasized that this proprietary technology is tailored for filmmakers, distinguishing it from general-purpose AI video applications. The company anticipates increased adoption of these tools among creators following the acquisition.
Furthermore, Netflix plans to leverage AI to enhance its advertising offerings, introducing new ad formats and enhancing customization options. The company aims to achieve $3 billion in advertising revenue for the current year.
In the first quarter of 2026, Netflix reported revenue of $12.25 billion, marking a 16.2% year-on-year increase, with profits soaring by 83% to $5.28 billion. The company closed 2025 with 325 million paying subscribers.