Netflix plans to add a vertical video feed, use AI for recommendations

Netflix is set to introduce a vertical video feed similar to TikTok within its apps this month, marking a significant shift in how users will interact with content. The company has been testing this feature since last year, which is expected to help users discover not only video podcasts but also a wide array of shows and movies currently available. In addition to the new video feed, Netflix plans to leverage artificial intelligence extensively for content recommendations and creation. The initiative follows the launch of a ChatGPT-powered search feature last year. Gregory Peters, co-CEO of Netflix, emphasized during the company’s first-quarter conference call that while Netflix has been a leader in personalization for two decades, there remains ample opportunity to enhance this aspect through modern technologies. He noted, “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.” Ted Sarandos, co-CEO, shared his vision of AI tools revolutionizing the content production process. He remarked, “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.” In a strategic move to bolster its AI capabilities, Netflix recently acquired Interpositive, an AI-focused company founded by Ben Affleck. Sarandos expressed optimism about this acquisition, noting that it is designed specifically for filmmakers, setting it apart from other general AI applications in video production. He highlighted the growing interest from creators who have engaged with the tools offered by Interpositive, indicating a promising future for its integration into Netflix's operations. Furthermore, Netflix aims to utilize AI to refine its advertising strategies, introducing new formats and customization options to enhance returns. The company anticipates generating $3 billion in ad revenue this year, with a reported revenue of $12.25 billion in Q1 2026, reflecting a 16.2% year-over-year increase. Their profit surged by 83%, reaching $5.28 billion. In a notable leadership change, Reed Hastings, co-founder and chair of Netflix, is set to depart from the company’s board this summer. Additionally, Netflix recently increased subscription prices in the U.S., which could positively influence the upcoming quarter, as the company ended 2025 with 325 million paying subscribers.