Netflix plans to display 'generative AI-powered ads' during streaming of its standard ad-supported plan
Netflix, a major streaming service, announced a framework for advertisers to create 'generative AI-powered ads' at an event for advertisers held on May 14, 2025. Ads using generative AI are expected to be displayed on Netflix's standard ad-supported plan.
Netflix Upfront 2025: The Center of Attention - About Netflix
Netflix will show generative AI ads midway through streams in 2026 - Ars Technica
https://arstechnica.com/gadgets/2025/05/netflix-will-show-generative-ai-ads-midway-through-streams-in-2026/
Netflix ad tier has 94 million monthly active users
https://www.cnbc.com/2025/05/14/netflix-ad-tier-monthly-active-users.html
In November 2022, Netflix began offering an 'ad-supported standard plan' in which advertisements are inserted several times during streaming. At the time of writing, the price of the ad-supported standard plan is 890 yen per month , which is an overwhelmingly lower price than the standard plan at 1,590 yen per month and the premium plan at 2,290 yen per month.
Netflix starts offering 'basic with ads' for 790 yen per month, 200 yen cheaper with ads - GIGAZINE
Netflix initially launched its ad delivery service using Microsoft's digital ad delivery system, but has announced that it will phase out the use of this system and transition to its own ad delivery system, the Netflix Ads Suite. In November 2024, it was reported that Canada became the first country to operate ads exclusively with the Netflix Ads Suite.
Amy Reinhart, president of Netflix's advertising division, announced at an advertiser event on May 14 that the ad-supported standard plan had attracted 94 million monthly active users worldwide. As of November 2024, the number of monthly active users of the ad-supported standard plan was 70 million, an increase of 24 million in just six months.
In particular, American subscribers to the ad-supported standard plan are highly engaged, spending an average of 41 hours a month on Netflix, and Netflix reaches more users aged 18-34 than any other broadcast or cable network.
'Compared to our competitors, attention on Netflix is much higher from start to finish. What's even better is that members pay as much attention to the mid-roll ads as they do to the show or movie itself,' said Reinhardt.
The event also announced a framework for advertisers powered by generative AI. Netflix claimed, 'We're unveiling a new modular framework of ad formats that leverages generative AI to instantly blend advertisers' ads with the world of Netflix programming, helping us deliver a better, more relevant experience for Netflix members and drive the best results.'
The new generative AI-powered ad format will be available in all countries where the ad-supported standard plan is supported by 2026.
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