Overview

• Netflix announced the rollout of generative AI-powered ads exclusively for its ad-supported tier in 2025.
• These ads will appear as midroll overlays and pause-screen call-to-actions, blending seamlessly into show environments.
• The ad-supported tier has grown to 94 million monthly users since its launch in late 2023, reflecting strong demand for lower-cost options.
• Netflix aims to double its ad revenue next year, leveraging its in-house ad platform launched earlier in 2024.
• Privacy concerns have been raised over the use of AI-generated, highly personalized ads, as competitors like YouTube explore similar technology.