Netflix has confirmed it will begin using generative AI to create custom advertisements for its ad-supported plans starting in 2026. At the company’s recent Upfront event for advertisers, Netflix’s President of Advertising, Amy Reinhard, revealed plans to roll out AI-generated midroll and pause ads—meaning viewers could soon be served tailored ads not only during show breaks but also when they hit pause.
This development marks a significant shift for Netflix, which originally built its reputation as an ad-free, DVD-by-mail service when it launched in 1997. Over the years, the platform evolved into the world’s most prominent streaming service. But now, in what some are calling a full-circle moment, it’s moving aggressively toward monetization strategies that many feel undermine the original appeal of streaming.
In a moment that feels almost poetic, The Dark Knight trilogy was added to Netflix’s library on April 1—a fitting backdrop for what critics are calling Netflix’s “villain arc,” echoing Harvey Dent’s iconic line: “You either die a hero, or live long enough to see yourself become the villain.” 
Generative AI: Netflix’s New Frontier in Advertising
Netflix is no stranger to AI. Just last month, it quietly introduced an AI-powered search tool—using OpenAI technology—to help users discover what to watch. The new AI-generated ads, however, represent a much more visible and potentially disruptive change to the user experience.
These ads won’t just be generic commercials—they’ll be interactive and customized based on user behavior and preferences. Whether during a tense moment in a drama or a pause during a comedy, Netflix aims to insert context-aware, targeted ads that blend into your viewing session.
Reinhard emphasized the platform’s progress and ambitions:
“So if you take away anything from today, I hope it’s this: the foundation of our ads business is in place. And going forward, the pace of progress is going to be even faster.”
The Death of Ad-Free Binge-Watching?
Gone may be the golden age of uninterrupted streaming. While users can still avoid ads by subscribing to Standard or Premium plans, Netflix has also been raising prices on its ad-free tiers, nudging many toward its more affordable ad-supported option.
In a not-so-distant future, viewers could be enjoying an episode of Squid Game only to be interrupted mid-scene—or even during a pause—with an AI-generated ad for a Baconator or the latest tech gadget.
If this move has you reconsidering your subscription, you’re not alone. Users may soon face a choice between enduring more frequent, AI-driven advertising or paying even more for an ad-free experience.
