Netflix to launch AI-powered ads by 2026, users call it a “Black Mirror” move
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In a move that has sparked widespread backlash online, Netflix announced it will begin rolling out generative AI-powered advertisements in 2026.
The announcement came during the company’s annual Upfront event held on May 15, where Netflix outlined its vision for a more “relevant” and “interactive” ad experience.
According to the streaming giant, these AI-generated ads will appear in mid-roll and pause breaks, featuring dynamic elements such as overlays, call-to-action buttons, and second-screen options. The goal, Netflix said, is to deliver "the right ad to the right member at the right time" by integrating ads seamlessly with the themes and settings of its original content.
“Netflix debuted a new modular framework for ad formats that leverages generative AI to instantly marry advertisers' ads with the worlds of our shows,” the company explained, claiming the approach would improve user experience while maximising advertising impact.
Netflix entered the ad-supported market in late 2022 and ended 2024 with 301 million subscribers.
Amy Reinhard, President of Advertising at Netflix, revealed that subscribers on the ad-supported plan spend an average of 41 hours per month on the platform. She emphasised that viewers pay just as much attention to mid-roll ads as they do to the content itself. “We’ve built a solid foundation for our ads business,” Reinhard stated. “Now, we’re moving even faster.”
However, the announcement wasn’t well-received on social media.
Many users expressed frustration over Netflix’s increasing commercialisation. “Are they testing new Black Mirror episode ideas on us now?” one user posted, referencing the dystopian anthology series available on Netflix itself. Others criticised the company for introducing AI ads after already raising subscription prices, while some hinted they might seek alternative streaming platforms.
Netflix isn’t alone in turning to AI to boost ad revenue.
Meta, led by CEO Mark Zuckerberg, has also outlined ambitious plans to overhaul the advertising industry with AI. Zuckerberg recently said the company aims to automate the entire ad creation and distribution process—from generating ad creatives and copy to targeting the appropriate audience—all based on user objectives.
