Netflix says its leveraging GenAI to improve the quality of its recommendations and content discovery features.
The streamer is currently beta testing a conversational search experience that allows subscribers to use natural language to explore the catalogue.
It is also using artificial intelligences to localise promotional assets in a variety of languages to help them travel better around the globe. AI tools are also being used in content creation, for example in Happy Gilmore 2, filmmakers used GenAI coupled with ML and Eyeline’s 6 proprietary volumetric capture technologies to de-age characters during a flashback scene to open the feature.
There were no new subscribers numbers during the investor call to accompany the Q3 2025 update.
Revenue rose 17% year on year to $11.51 billion (€10.9bn), with operating margin at 28% after a $619 million expense tied to a Brazilian tax dispute; absent that item, Netflix said it would have exceeded its margin forecast. The company also flagged its “best ad sales quarter ever” and reiterated that ads are growing from a small base versus subscriptions.
AI is also being used to test new ad formats, to generate the most relevant ad creative and placement. Netflix promised “dozens” of new ad formats would debut during 2012.
Despite speculation that Netflix may have bid for all or part of Warner Bros. Discovery there was a clear red line on legacy media: Netflix has “no interest in owning legacy media networks,” according to co-CEO Ted Sarandos, reiterating a stance it has “been very clear” about previously.
