Netflix is set to launch a vertical video feed within its apps this month, aiming to enhance user discovery of video podcasts alongside traditional shows and movies. The move follows the company’s increased reliance on artificial intelligence (AI) for content creation and personalization.

During a recent conference call, co-CEO Gregory Peters highlighted that recommendation systems based on new AI model architectures can improve current personalization more efficiently. He added: 'Recommendation systems based on new model architectures not only improve current personalization but also let us iterate and improve more quickly.'

Ted Sarandos, another co-CEO, sees AI tools as powerful aids in the content creation process, stating that while great artists are still necessary, AI can provide better tools to assist them. The company has also acquired InterPositive, an AI creation firm founded by Ben Affleck, which is expected to further boost Netflix’s generative AI capabilities.

Netflix plans to use AI not just for recommendations but also to improve its ad suite and allow for new formats and customization to enhance ad revenue. The company expects to generate $3 billion in ad revenues this year and reported a 16.2% increase in yearly revenue to $12.25 billion in Q1 2026.

Reed Hastings, co-founder and chair of Netflix, will leave the company’s board this summer after almost two decades, marking an interesting transition period for the streaming giant as it continues to evolve with technology.