Netflix will use AI to make ad breaks look less like ad breaks

Netflix is working on a new type of ad that will use AI to let advertisers “marry” their product with the streaming service’s shows and movies. This may sound like Warner Bros. Discovery’s plan to turn its IP into commercials, but during Netflix’s Upfront event on Wednesday, the company demonstrated an example that placed the image of a product over a background inspired by one of its shows, like Stranger Things.

If you’re on Netflix’s ad-supported plan, that means you might see an ad that blends in with the show you’re watching, whether it’s Bridgerton or Wednesday. Netflix says advertisers can insert this new ad format in the middle of what you’re watching, or put them on the screen when you hit pause. They could contain an overlay or call to action when they roll out by the end of this year.

It’s not clear how Netflix plans to evolve these ads down the road, but its advertising president Amy Reinhard said the pace of progress “is going to be even faster.” During the event, Netflix also announced that its ad-supported tier reached 94 million monthly users, more than doubling the 40 million it had at the same time last year.