Netflix will launch a TikTok-like vertical video feed within its app this month, and plans to use AI extensively to create and recommend content, the company announced Thursday.
Netflix has been testing vertical video feeds since last year. The short video feature could help users find video podcasts along with current shows and movies. The company is also doubling down on leveraging AI for recommendations after releasing a ChatGPT-powered search feature last year.
“We’ve been working on personalization and recommendations for 20 years, and we think there’s still a lot of room to improve with newer technology,” Netflix co-CEO Gregory Peters said during the company’s first-quarter conference call. “A recommendation system based on a new model architecture not only improves current personalization, but also allows us to iterate and improve faster and add support for different content types more efficiently.”
Co-CEO Ted Sarandos said he sees AI tools improving the entire content creation process. “In general, we expect GenAI to make our content better and our tools and processes better. […] It takes great artists to create great art, and AI won’t change that. But AI will give artists better tools to realize that vision,” he said.
Netflix acquired Ben Affleck’s AI production company Interpositive last month, and Sarandos said the company is seeing interest from creators.
“We believe the acquisition of Interpositive will accelerate GenAI’s capabilities because, unlike other GenAI video applications, it is a unique technology created specifically for filmmakers and filmmaking. Interpositive is very new to us, but we are seeing interest from creators who have spent time with this tool and we are seeing adoption momentum build,” he said.
Netflix also said it wants to use AI to improve its ad suite, enabling new formats and customization to increase revenue. The company expects to generate $3 billion in advertising revenue this year.
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Netflix reported first quarter 2026 revenue of $12.25 billion, an increase of 16.2% year over year, and profit of $5.28 billion, an increase of 83%. In conjunction with its first quarter results, Netflix announced that co-founder and chairman Reed Hastings will retire from the company’s board of directors this summer.
Notably, the company increased subscription prices in the US late last month, which could have a positive impact in the coming quarter. The company announced that it had 325 million paid members as of the end of 2025.
