Netflix is rolling out a TikTok-style vertical video feed inside its apps this month, alongside plans to expand artificial intelligence across recommendations, content creation, and advertising. The company made the announcements during its first-quarter earnings call on Thursday, April 17.
The Netflix vertical video feed has been in testing since last year. Netflix says the short-form format could help users discover video podcasts alongside the platform’s existing catalog of shows and films. The format mirrors what users encounter on TikTok and Instagram Reels, allowing viewers to scroll vertically through short clips rather than navigate a traditional grid or list interface.
Recommendation upgrades and the Netflix vertical video feed
Co-CEO Gregory Peters described the AI recommendation push as a long-term investment. “We have been in personalization and recommendation for two decades, but we still see tremendous room to make it better by leveraging newer technologies,” he said. Peters added that recommendation systems built on newer model architectures allow Netflix to iterate faster and support different content types more efficiently.
The announcement follows Netflix’s launch of a ChatGPT-powered search feature last year. The company says newer AI models allow it to improve personalization beyond what earlier systems could manage, with the vertical feed drawing on the same recommendation infrastructure as other content on the platform.
AI tools for filmmakers
Co-CEO Ted Sarandos addressed how generative AI will affect production workflows. “In general, we expect GenAI to make content better; better tools, better processes,” he said. “It takes a great artist to make great art, and AI won’t change that. But AI will give those artists better tools to bring those visions to life.”
Last month, Netflix acquired InterPositive, the AI creation company co-founded by actor and filmmaker Ben Affleck. Sarandos described the technology as proprietary and built specifically for filmmakers, separate from general-purpose generative video tools. “While our ownership of InterPositive is very new, we have generated interest with creators who have spent time with the tools, and we are seeing momentum build around adoption,” he said.
Advertising and Q1 results
Netflix plans to apply AI to its advertising business, targeting new formats and customization options to improve advertiser returns. The company expects to generate $3 billion in ad revenue this year. Netflix originally launched its ad-supported tier in November 2022 and has since expanded it alongside its broader revenue ambitions.
For Q1 2026, Netflix reported revenue of $12.25 billion, up 16.2% year-over-year. Profit rose 83% to $5.28 billion. The company ended 2025 with 325 million paying subscribers. Netflix raised subscription prices in the United States late last month, which could affect subscriber numbers in the coming quarter. Co-founder and chair Reed Hastings will leave the board this summer.