Netflix has announced its plans to introduce AI-generated advertising, including pause ads, within its programming on the ad-supported tier starting in 2026. This development was first reported by Media Play News, though specifics on how these ads will target viewers remain undisclosed. It's unclear whether the ads will be personalized based on a user's watch history or tailored to the content being viewed at the time. As of now, the mechanics behind these ads and their presentation format are largely unknown, but their implementation is on the horizon.
During the recent Upfront for advertisers event in New York City, Amy Reinhard, Netflix's President of Advertising, highlighted the company's unique strengths. "Either they have great technology, or they have great entertainment," she stated. "Our superpower has always been the fact that we have both." Reinhard emphasized that Netflix's ad-supported tier subscribers engage with the platform for an average of 41 hours per month. According to Kotaku's calculations, this translates to approximately three hours of ads per month for these viewers, a significant amount even without AI integration. However, by 2026, these ads will indeed be AI-generated.
Reinhard also noted that when compared to competitors, Netflix's viewers show higher initial and sustained attention to ads. Impressively, she added, "members pay as much attention to mid-roll ads as they do to the shows and movies themselves." While Netflix has yet to announce an official rollout date for these AI-generated ads, the anticipation builds as the streaming giant continues to innovate in its advertising strategies.
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