Netflix Will Show Generative AI Ads Midway Through Streams In 2026

At its second annual Upfront 2025 event yesterday, Netflix announced that it has created interactive mid-roll ads and pause ads that incorporate generative AI. These new ad formats are expected to roll out in 2026. Ars Technica reports: '[Netflix] members pay as much attention to midroll ads as they do to the shows and movies themselves,' Amy Reinhard, president of advertising at Netflix, said. Netflix started testing pause ads in July 2024, per The Verge. Speaking to advertisers, Reinhard claimed that ad subscribers spend 41 hours per month on Netflix on average. The new ad formats follow Netflix's launch of its own in-house advertising platform in the US in April. It had previously debuted the platform in Canada and plans to expand it globally by June, per The Verge.

Netflix considers its advertising business to be in its early stages, meaning customers can expect the firm's ad efforts to continue expanding at a faster rate over the coming years. The company plans to double its advertising revenue in 2025. 'The foundations of our ads business are in place, and going forward, the pace of progress will be even faster,' Reinhard said today. Further reading: Netflix Says Its Ad Tier Now Has 94 Million Monthly Active Users

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