Netflix Redesigns Platform with AI, Sees 13% Revenue Growth

Netflix has launched a redesigned homepage and application experience, integrating OpenAI-supported search tools to enhance user convenience in discovering television shows and movies. This update extends beyond television screens, introducing a vertical video feed designed for mobile devices, aiming to improve the viewing and sharing experience. The company has also announced its collaboration with OpenAI to explore integrating generative AI into the user experience.

The new features, including more prominent content discovery shortcuts, are designed to provide real-time recommendations based on the audience's current mood and interests. These updates will be rolled out to global members over the next few months. Netflix's comprehensive overhaul of the user experience is aimed at helping members navigate its vast library of television shows and movies more effectively, amidst intense competition in the streaming industry. Rivals are also vying for new and existing customers to boost revenue and profitability.

Following a brief stagnation in user growth, Netflix has implemented several changes to its business, including the introduction of a more affordable ad-supported plan and measures to combat password sharing. Since then, Netflix's subscriber base has been steadily increasing. In January, the company reported that its paid membership had reached 300 million, an increase of 19 million from the previous quarter. Although Netflix no longer reports quarterly subscriber numbers, its revenue has grown by 13% during this period.

In recent years, Netflix has made various updates to the consumer experience, but this is the first major redesign in a long time. The vertical video feed, similar to TikTok's format, will allow users to save video clips or share them with friends. Netflix's Chief Product Officer, Yuni Lee, stated during a media briefing this week that vertical video feeds are a convenient way to browse video content on social media apps, and members enjoy exploring video clips and trailers to find their next favorite show.

Chief Technology Officer, Elizabeth Stone, mentioned that AI-enhanced features will enable members to use specific phrases while searching for content they want to watch. Netflix confirmed that these features will be supported by OpenAI, although the relevant models will be trained by a team within Netflix to meet member needs. Yuni Lee mentioned during a conference call with reporters that this update will place all the information members need to make viewing choices in a prominent position. She also noted that members' eyes strain when scrolling up, down, left, and right on the homepage, switching between different rows and title details.