May 17, 2025, 9:31 am | Read time: 2 minutes
Netflix is planning to introduce ad breaks in its more affordable subscription tier with ads starting in 2026, including during pauses. The company intends to use generative AI to link advertisements with content.
Netflix customers with cheaper ad-supported subscriptions should expect more interruptions. Even during a paused playback, ads will appear, as the streaming service announced. Artificial intelligence is used to link ads with the content.
New Ad Formats Planned
Amy Reinhard, head of advertising at Netflix, has presented new ways the streaming platform can deliver ads, as reported by “Computer BILD” (part of Axel Springer SE like TECHBOOK). These include an interactive midroll format—ads that appear in the middle of the video—and ads that show up on the screen when paused.
The ads are not just static; they aim to encourage users to actively interact with them. To achieve this, Netflix is working on additional clickable overlays. There will be so-called Calls to Action (CAT) to prompt users to take specific actions—such as clicking a link. When watching on TV, buttons can appear on a second screen on a smartphone to execute these actions.
Netflix Ad-Supported Subscription Increasingly Popular
Netflix reports more than 94 million customers worldwide in the ad-supported subscription model. In November 2024, there were about 70 million. The company no longer provides general customer number trends since this year. At the end of 2024, there were approximately 300 million customer households in total. Netflix estimates that more than 700 million people worldwide use the service.
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Personalized Ads More Attractive to Advertisers
With the growth of ad-supported subscriptions, Netflix has become more appealing to advertisers who previously relied on traditional TV channels. The offering is currently available in twelve countries, including Germany. Netflix, in collaboration with partners like Microsoft, has developed its own ad platform, which will soon be launched in Europe. Ads can be personalized based on more than 100 interest categories, including life stages.