Netflix has announced its plans to introduce AI-generated advertising, including the much-discussed pause ads, within its programming on the ad-supported tier starting in 2026. According to a report from Media Play News, the specifics of how these ads will be targeted remain undisclosed. It's unclear whether the ads will be personalized based on a viewer's watch history or tailored to the content being watched at the time. Currently, details about the backend operations and presentation of these ads are scarce, but the rollout is confirmed.
At a recent Upfront event for advertisers in New York City, Amy Reinhard, Netflix's President of Advertising, 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 engage with the platform for an average of 41 hours per month. Kotaku calculated that this translates to about three hours of ads per month for these viewers, which is significant even without AI integration. However, by 2026, these ads will be AI-generated.
Reinhard also pointed out that compared to competitors, Netflix's viewers show higher initial attention to ads, which remains elevated throughout. Impressively, she noted that subscribers 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 implementation date for this change, the introduction of AI-generated ads marks a significant evolution in their advertising strategy.
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