Netflix will significantly expand where ads appear in its service from 2027.

Online outlet Gigazine reported on May 14 that Netflix unveiled plans at an event for advertisers to attach ads to its smartphone app’s vertical video feed and to podcasts.

Netflix ads currently appear mainly when users play standard horizontal content on the Standard plan with ads. The plan, priced at 890 yen a month, is the cheapest offering. It runs video ads during playback and users cannot fast-forward or skip them. Netflix plans from 2027 to broaden where ads are attached and increase advertising touchpoints within the app.

The announcement shows Netflix is accelerating the expansion of its advertising business. Netflix said monthly active viewers of the Standard plan with ads have topped 250 million. It also said 80 percent of members use Netflix at least once a week. For advertisers, it presented both the size of reachable users and how often they log in.

Netflix also outlined plans to expand the ad plan to more regions. It plans from 2027 to offer the Standard plan with ads in Australia, Belgium, Colombia, Denmark, Indonesia, Ireland, the Netherlands, New Zealand, Norway, Peru, the Philippines, Poland, Sweden, Switzerland and Thailand. As it increases the number of countries operating ad products, it will also expand ad inventory.

Netflix is also incorporating artificial intelligence into tools that support advertisers. Netflix previously announced plans to introduce AI tools for advertisers in its earnings release in January 2026. It said it uses AI for subtitle localisation and promotions, continuing its push to strengthen ad-related business.

Netflix's latest adjustment is not limited to simply adding ad slots. Vertical video feeds and podcasts are areas where usage patterns differ from watching longer-form video. Netflix appears to be aiming to diversify ad products by expanding screens where ads are displayed while moving ads to sections users access frequently.

User-perceived changes also appear inevitable. Until now, the focus has been on ads appearing during playback of standard content. Going forward, ads could also enter app browsing and audio-content consumption. With Netflix expanding its advertising business based on the viewer base and usage frequency of its ad-supported plan, how ad formats and placement methods change will be the key point to watch.