Netflix to implement new AI feature streamers will hate

Remember back in the day when everyone hated cable TV and cut the cord to get away from being held captive to ads and being forced to pay high monthly bills for a bunch of channels they didn’t really want?

💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💵 

Netflix and other streaming services were supposed to be the modern alternative to that, giving consumers a chance to watch videos uninterrupted and to pay an affordable monthly cost to do it. And they were… for a while.

Now, that all seems like a distant memory long forgotten, as streaming companies seem to be competing with how far they can push customers before they decide enough is enough.

Related: Netflix is making an unexpected move no one saw coming

Unfortunately, it seems that Netflix now has a new entry into the contest to see just how much it can annoy its customer base, and as a bonus, it’s using AI technology to do it. This new AI feature is one that users are sure to hate for multiple reasons.

A remote control device is used to manipulate a television. -lead

Image source: Shutterstock

New Netflix AI Technology is going to turn your shows into ads

Netflix (NFLX) is aiming to double its ad revenue next year, and it’s implementing some new and creative methods of targeting consumers in order to make that happen.

The company shared during its annual Upfront event that it is working on a new type of ad entirely. Specifically, the company, which launched its own in-house ad platform just this year, has said the new ad technology it’s creating “leverages generative AI to instantly marry advertisers’ ads with the worlds of our show.”

The example the company provided was a product image over a Stranger Things-inspired background, and the company promised that the new technology would “create a better, more relevant experience for our members and drive the best results.” 

Related: Netflix CEO shares a controversial take on movie theaters

The goal appears to be making ads less intrusive and to make them feel like a part of whatever you are watching rather than taking away from the viewing experience. Of course, this has some questioning whether users will be able to tell that they’re being served up an ad at all, while others are concerned about the privacy issues raised by providing AI tools with the data to create these ultra-tailored ads.

Regardless of these concerns, Netflix is moving full steam ahead. The ads are expected to be deployed starting in 2025 and will include an overlay and call to action when they are rolled out.

They are expected to be used midroll — aka in the middle of the shows that you are watching — and will also display when you hit pause on your screen.

Related: Netflix stock has secret weapon amid trade war

For what it’s worth, Netflix is not the only company that aims to revolutionize the ad experience using AI either. YouTube has also announced plans to deliver more personalized ads using artificial intelligence. So, no matter what streaming service you’re using, you’re probably going to be unable to escape this new kind of ad.

Interest in Netflix’s ad-supported tier is growing

The new generative AI ads are expected to be shown only to those on the company’s ad-supported plan, which has grown substantially in popularity. There are now 94 million monthly users on the ad-supported plan, which is double the 40 million users that were signed up for the plan last year at the same time.

More Tech News: 

While this is still only a fraction of the 300 million Netflix subscribers worldwide, it still shows a substantial number of consumers are willing to accept ads in exchange for reduced streaming prices. Of course, the question is just how far companies can go with introducing new types of ads before consumers decide they’re done and start demanding better alternatives.