Netflix is joining its streaming rivals in testing the amount and types of advertisements its subscribers are willing to endure for lower prices.
Today, at its second annual upfront to advertisers, the streaming leader announced that it has created interactive mid-roll ads and pause ads that incorporate generative AI. Subscribers can expect to start seeing the new types of ads in 2026, Media Play News reported.
“[Netflix] members pay as much attention to midroll ads as they do to the shows and movies themselves,” Amy Reinhard, president of advertising at Netflix, said, per the publication.
Netflix started testing pause ads in July 2024, per The Verge.
Netflix launched its ad subscription tier in November 2022. Today, it said that the tier has 94 million subscribers, compared to the 300 million total subscribers it claimed in January. The current number of ad subscribers represents a 34 percent increase from November. Half of new Netflix subscribers opt for the $8 per month option rather than ad-free subscriptions, which start at $18 per month, the company says.