Netflix is testing generative AI ads for its ad-supported tier. During Upfront 2025, Netflix’s President of Advertising, Amy Reinhard, announced that starting in 2026, the platform will introduce AI-generated interactive ads. These will come in two formats: midroll ads, which play during a show, and pause ads, which appear when a viewer pauses their content.
Powered by AI, these ads will be more personalized and interactive than traditional ones. According to Media Play News, Netflix revealed that its $7.99 ad-supported tier has reached 94 million subscribers and now accounts for 50% of all new sign-ups. With the growing popularity of this lower-cost plan, Netflix is aiming to double its ad revenue.
At the event, Reinhard stated, “Compared to our competitors, attention starts higher and stays much higher. Even more impressively, viewers pay as much attention to mid-roll ads as they do to the shows and movies themselves.”
Meanwhile, YouTube plans to introduce AI-driven ads powered by Gemini, which will appear right after emotionally engaging or “peak” moments in videos when viewer attention is at its highest. Additionally, Amazon Prime Video is now offering an add-on plan that lets users watch movies and shows without ads.
