Netflix is preparing to roll out a TikTok-style vertical video feed within its apps this month, while also signalling a broad expansion of artificial intelligence across its recommendation systems, content creation pipeline, and advertising business.

The streaming giant has been testing the short-form vertical video feature since last year. The feed is designed to help users discover content including video podcasts, alongside its existing library of shows and films.

Co-chief executive Gregory Peters, speaking during the company's first-quarter earnings call, said Netflix sees significant room to improve its personalisation and recommendation capabilities through newer AI model architectures, adding that such systems would allow the company to iterate more quickly and support different content types more efficiently.

Co-chief executive Ted Sarandos said he expects generative AI to improve tools and processes across the entire content creation process, while maintaining that skilled artists remain essential. 

Netflix acquired filmmaker Ben Affleck's AI filmmaking company Interpositive last month, which Sarandos described as proprietary technology built specifically for filmmakers, distinct from general-purpose AI video applications. He said momentum around creator adoption of the tools has been building since the acquisition.

The company also intends to use AI to improve its advertising suite, enabling new ad formats and greater customisation. Netflix expects to generate $3 billion in advertising revenue this year.

Netflix reported revenue of $12.25 billion in the first quarter of 2026, up 16.2% year-on-year, with profit rising 83% to $5.28 billion. The company ended 2025 with 325 million paying subscribers.