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The days of passive ad breaks while binge-watching your favourite TV series may soon be over, with Netflix set to roll out a new advertising model powered by generative AI. The new tech will
start appearing for users on the ad-supported tier in 2026, and it could completely change the way you experience Netflix, in ways that are starting to feel eerily close to the TV show
Black Mirror. At its annual upfront presentation in New York this week, Netflix unveiled a new AI-enhanced ad suite that will play interactive, personalised and potentially unskippable ads
which are seamlessly blended into shows and movies. The new system, built on Netflix’s in-house ad tech platform, allows for what the company calls “context-aware” ad formats. This means ads
could be embedded within content, similar to overlays, product placements, or interactive elements that appear during a mid-roll break or when you hit pause. Using generative AI, these ads
will be harder to ignore. The technology can adapt ad tone, timing, and content based on behaviour, past viewing habits, or even products you’ve searched online. Netflix says this move will
make ads “more relevant and useful,” with a smoother, less jarring experience for users. But critics warn that blending ads into content risks eroding viewer trust, especially when viewers
may not even realise they’re watching an ad. Privacy advocates are also raising concerns. While Netflix has not fully detailed how it will use viewer data, the company has confirmed that ad
targeting will be based on behavioural signals, and possibly even mood indicators, to deliver hyper-personalised messages. Netflix’s move comes as competition intensifies among streamers to
monetise content without raising prices. Amazon, YouTube, and even Spotify have begun experimenting with AI-driven ads that dynamically adapt to viewers. Only viewers on Netflix’s A$12
ad-supported plan, now with over 94 million monthly users globally, will see these AI-powered ads. Premium and standard ad-free subscribers remain in the clear… for now.