Netflix is set to launch a new vertical video feed inside its apps this month, a feature that mirrors the short‑form, swipe‑up experience popularized by TikTok. The company has been testing the format since last year and says the addition will help users discover video podcasts alongside its core library of series and films.

Co‑CEOs Gregory Peters and Ted Sarandos used the first‑quarter earnings call to signal a broader AI strategy. Peters highlighted two decades of work in personalization but stressed that “new model architectures” can boost recommendation accuracy and speed up the rollout of support for emerging content types. The streaming service’s recent rollout of a ChatGPT‑powered search tool is the first step, and the company plans to embed AI throughout the user experience.

Sarandos focused on the creator side, noting that generative AI will serve as a “better tool” for artists rather than a replacement. Netflix’s acquisition of Ben Affleck’s InterPositive, a company specializing in AI‑driven filmmaking technology, is expected to accelerate the development of proprietary GenAI capabilities. "We are seeing momentum build around adoption," Sarandos said, adding that early access has already sparked interest among filmmakers.

Advertising also stands to benefit. Netflix outlined plans to use AI to refine its ad suite, introducing new formats and greater customization to improve advertiser returns. The company projects $3 billion in ad revenue for the year, a target that reflects confidence in AI‑enhanced targeting and measurement.

Financially, the moves appear timely. Netflix reported first‑quarter revenue of $12.25 billion, a 16.2% year‑over‑year increase, and profit surged 83% to $5.28 billion. The streaming giant ended 2025 with 325 million paying subscribers and recently raised U.S. subscription prices, a factor that could further boost earnings in the coming quarters. In parallel, co‑founder and chair Reed Hastings announced he will step down from the board this summer, marking the end of an era for the company.

Industry observers see the vertical feed as a test of Netflix’s ability to compete in the short‑form space, while the AI rollout underscores a strategic bet on technology to sustain growth. If the new formats and AI‑driven ad products deliver the promised revenue, Netflix could solidify its position as both a content platform and a technology innovator in the streaming market.

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