Netflix Unveils AI-Powered Vertical Video Feed and Enhanced Recommendations

The company's latest move is set to revolutionize content creation and discovery, leveraging the power of AI for a more personalized user experience.

Netflix has been testing a vertical video feed since last year, and it's now set to launch within its apps this month. This feature will aid users in discovering video podcasts, shows, and movies, making it easier for them to find content that suits their interests. The company is also leaning more into using AI for recommendations after launching a ChatGPT-powered search feature last year.

"We have been in personalization and recommendation for two decades, but we still see tremendous room to make it better by leveraging newer technologies," Netflix co-CEO Gregory Peters said during the company's first-quarter conference call.

According to Peters, recommendation systems based on new model architectures will improve current personalization and allow the company to iterate and improve more quickly. This will enable Netflix to add support for different content types much more efficiently.

Co-CEO Ted Sarandos emphasized the potential of AI tools in improving the content creation process. "In general, we expect GenAI to make content better; better tools, better processes," he said. "It takes a great artist to make great art, and AI won't change that. But AI will give those artists better tools to bring those visions to life."

Last month, Netflix acquired Ben Affleck's AI creation company Interpositive, which Sarandos believes will accelerate the company's GenAI capability. The proprietary technology created specifically for filmmakers and filmmaking has garnered interest from creators.

"With our acquisition of Interpositive, we think it accelerates our GenAI capability because it is proprietary technology created specifically for filmmakers and filmmaking, different from other GenAI video applications," Sarandos noted.

Netflix also plans to use AI to improve its ad suite, allowing for new formats and customization to get better returns. The company expects to generate ad revenue of $3 billion this year.

Netflix's Q1 Results and Future Plans

The company reported revenue of $12.25 billion in Q1 2026, up 16.2% year-year-year, and said profit jumped 83% to $5.28 billion. Alongside the first-quarter results, Netflix announced that its co-founder and chair, Reed Hastings, is leaving the company's board this summer.

Notably, the company hiked subscription prices in the U.S. late last month, which could have a positive impact next quarter. The company ended 2025 with 325 million paying subscribers.

StrictlyVC and TechCrunch Disrupt 2026

For those interested in staying up-to-date with the latest tech news and trends, StrictlyVC is set to kick off the year in SF on April 30. TechCrunch Disrupt 2026 will take place in October, where 10,000+ founders, investors, and tech leaders will gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation.