The Vertical Video Feed Netflix has been testing a vertical video feed since last year. The short video feature could aid users with discovering video podcasts, along with the current slate of shows and movies . The company is also leaning more into using AI for recommendations after launching a ChatGPT-powered search feature last year .
AI and Personalization “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 said 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” .
AI in Content Creation Co-CEO Ted Sarandos said he sees AI tools improving 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 said .
Last month, Netflix bought Ben Affleck’s AI creation company InterPositive, which, Sarandos said, has garnered 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” .
Ad Revenue and Growth Netflix also mentioned that it wants to use AI to improve its ad suite, and allow for new formats and customization to get better returns. The company expects to generate ad revenue of $3 billion this year . Netflix reported revenue of $12.25 billion in Q1 2026, up 16.2% year-over-year, and said profit jumped 83% to $5.28 billion .
