Netflix is increasingly employing GenAI to refine its recommendation algorithms and enhance content discovery for its users. Currently in beta, a conversational search feature allows subscribers to explore the platform's extensive library using natural language. The company is also leveraging artificial intelligence to adapt promotional materials into various languages, improving their global reach.
AI is further integrated into content creation. For example, in the making of *Happy Gilmore 2*, filmmakers utilized GenAI, alongside Machine Learning and Eyeline’s proprietary volumetric capture technologies, to digitally de-age characters for a flashback sequence at the beginning of the movie.
While the Q3 2025 investor call didn't reveal new subscriber figures, Netflix reported a 17% year-on-year revenue increase, reaching $11.51 billion (€10.9bn). The operating margin stood at 28%, factoring in a $619 million expense related to a Brazilian tax matter. Without this, Netflix claims it would have surpassed its margin expectations. The company highlighted its "best ad sales quarter ever," emphasizing that ad revenue is expanding from a relatively small base compared to subscription revenue.
AI is being used for ad format testing and to generate relevant creative and placements. "Dozens" of new ad formats are slated for release during 2012. Co-CEO Ted Sarandos addressed rumors about a potential Netflix bid for Warner Bros. Discovery. Sarandos stated Netflix has "no interest in owning legacy media networks," restating a previously made clear position.