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 regarding 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 even how they will appear to viewers remain largely unknown.
During the recent Upfront for advertisers event in New York City, Netflix's President of Advertising, Amy Reinhard, emphasized 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 highlighted that Netflix's ad-supported tier subscribers watch an average of 41 hours of content per month. Kotaku calculated that this equates to approximately three hours of ads per month for these viewers, a significant amount even without AI involvement. However, by 2026, these ads will indeed be AI-generated.
Reinhard also noted that when compared to competitors, attention to Netflix's content starts higher and remains higher throughout. Impressively, she mentioned that subscribers pay as much attention to mid-roll ads as they do to the shows and movies themselves. While Netflix has yet to provide an official implementation date for this change, the move towards AI-generated ads marks a significant shift in the streaming giant's approach to advertising.
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