Netflix, NFLX, will show generative AI ads midway through streams in 2026

At its Upfront event on Wednesday, Netflix announced plans to introduce advertisements powered by generative AI, starting in 2026.

These AI-generated ads will appear not just during regular ad breaks, but also when viewers hit the pause button. The only way to avoid them will be by upgrading to Netflix’s more expensive ad-free tier.

In a new twist, Netflix said the technology would be used to “seamlessly blend advertisers’ content with the worlds of our shows.” Rather than traditional commercials, viewers could see AI-personalized ads—for example, a product they recently searched for—inserted into scenes or settings styled after Netflix originals.

According to The Verge, one example shown to advertisers featured a product placement set against a backdrop inspired by Stranger Things.

The announcement has sparked backlash on social media, with many users venting frustration. One user posted: “My finger is hovering over the unsubscribe button, Netflix.”

Netflix first launched its ad-supported tier in 2022 as a lower-cost alternative to its standard plan. Priced at £5.99 ($7.99 in the U.S.), it comes with ads, while the standard ad-free plan costs £12.99 ($17.99 U.S.).

As of now, Netflix reports that 94 million of its 300 million global subscribers are on the ad-supported plan—up 34% from November and more than double the 40 million who had opted in at the same time last year.

Though advertising is still a relatively new venture for Netflix, the company appears eager to expand rapidly. Amy Reinhard, Netflix’s president of advertising, told attendees at the event, “The foundation of our ads business is in place—and from here, progress will move even faster.”

That acceleration now includes the use of generative AI to transform how ads are created and delivered to viewers.

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