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

2026-04-17 · Source: TechCrunch · Field: Media & Entertainment — Digital Media & Streaming, Entertainment Technology & Innovation, Advertising & Marketing Technology · Depth: Fundamental Awareness, quick

Summary

Netflix is launching a TikTok-like vertical video feed this month and plans extensive AI integration across its platform. The company has been testing the short video feature since last year to enhance content discovery, including video podcasts. Netflix co-CEO Gregory Peters stated that AI-driven recommendation systems, building on two decades of personalization, will improve current personalization and support new content types more efficiently. Co-CEO Ted Sarandos highlighted AI's role in content creation, providing artists with better tools. Netflix recently acquired Ben Affleck's AI creation company, InterPositive, which offers proprietary filmmaking technology. The company also aims to use AI to enhance its ad suite for new formats and customization, projecting $3 billion in ad revenue this year. Netflix reported Q1 2026 revenue of $12.25 billion, up 16.2% year-over-year, with profit jumping 83% to $5.28 billion, and co-founder Reed Hastings is departing the board.

Key takeaway

For Product Managers evaluating content strategy, Netflix's aggressive move into vertical video and AI-driven personalization signals a critical shift. You should explore integrating short-form video features and invest in AI for content discovery and creation tools to remain competitive. Consider how proprietary AI acquisitions, like InterPositive, can accelerate your generative AI capabilities and attract creators.

Key insights

Netflix is integrating AI across content creation, recommendations, and advertising while launching a vertical video feed.

Principles

• AI enhances existing personalization systems.
• AI provides artists with superior creation tools.

Method

Netflix uses new model architectures for recommendation systems and proprietary GenAI technology from InterPositive for filmmaking.

In practice

• Implement vertical video feeds for content discovery.
• Utilize AI for dynamic ad suite customization.

Topics

• Vertical Video Feed
• AI Recommendations
• Generative AI Content Creation
• InterPositive Acquisition
• Ad Monetization

Best for: Product Manager, Investor, Entrepreneur, Executive, Director of AI/ML, AI Product Manager

Related on AIssential

• Here’s what Netflix’s new vertical video feed is like — Netflix is integrating a TikTok-like vertical video feed, "Clips," into its mobile app to boost content discovery.
• Netflix ad tier surpasses 250 million monthly users — Netflix's ad-supported tier is rapidly expanding, driven by user growth and AI integration, amidst rising subscription costs.
• Sandra Bullock Hasn’t Seen Those AI Trailers for ‘Practical Magic 2,’ but Says It’s Time to ‘Lean Into’ New Tech - IMDb — Entertainment industry leaders are cautiously open to AI, viewing it as a tool for fan engagement and content creation.
• Netflix forms AI-powered studio for short-form content — Netflix established INKubator, an AI-powered studio, to produce short-form animated content with future plans for longer formats.
• Check out the latest news from YouTube’s Brandcast 2026. — YouTube is integrating AI and commerce features to enhance brand advertising and content monetization.
• Netflix Acquires Ben Affleck’s AI Startup — Is This the End of Hollywood, or a New Beginning? — AI in film production is enabling efficiency and creative freedom, not eliminating jobs.

Open in AIssential →

Editorial summary, takeaway, and curation by AIssential. Original article published by TechCrunch.