Netflix is preparing to introduce a vertical video feed inside its app, a move that signals more than just a design update. The feature, which resembles the short-form format popularized by TikTok, is intended to reshape how users discover content across the platform’s expanding library of shows, films, and video podcasts. While Netflix has been testing the format since last year, its broader rollout reflects a recognition that discovery, not just content, is now central to platform growth.
That shift is happening alongside a deeper investment in artificial intelligence. The company is expanding its use of AI across both recommendation systems and content creation workflows, building on a ChatGPT-powered search feature introduced last year. Co-CEO Gregory Peters framed the move as an extension of Netflix’s long-standing focus on personalization, but with a new level of speed and flexibility. New model architectures, he noted, allow the company to iterate faster and integrate different types of content more seamlessly into user feeds.
The implications extend beyond recommendations. Co-CEO Ted Sarandos emphasized that AI will play a growing role in how content itself is produced, positioning generative tools as a way to enhance, rather than replace, creative work. That strategy became more concrete with Netflix’s recent acquisition of Interpositive, an AI-focused production company co-founded by Ben Affleck. Unlike more generalized AI video tools, Interpositive’s technology is designed specifically for filmmakers, suggesting that Netflix is investing in infrastructure that integrates directly into the creative process.
At the same time, the company is aligning these shifts with its advertising ambitions. Netflix expects to generate $3 billion in ad revenue this year and is exploring how AI can enable more customized ad formats and targeting. The vertical feed and enhanced recommendation systems are not just about user experience. They are also about increasing engagement in ways that can be monetized more precisely.
Financially, the company is operating from a position of strength. Netflix reported $12.25 billion in revenue for the first quarter of 2026, a 16.2 percent increase year over year, with profits rising 83 percent to $5.28 billion. It ended 2025 with 325 million subscribers and recently raised subscription prices in the U.S., positioning itself for additional revenue growth in the coming quarters. At the same time, co-founder Reed Hastings is preparing to step down from the board, marking a transition moment for the company as it doubles down on its next phase.
What Netflix is building is not just a larger content library or a more efficient recommendation engine. It is a system where format, discovery, creation, and monetization are increasingly integrated. The vertical feed, AI tools, and advertising strategy all point in the same direction: a platform that is less about what you choose to watch and more about what the system is able to surface, shape, and optimize in real time.
