Netflix Reinvents Discovery With AI
Netflix rolled out an OpenAI-powered search engine designed to help users discover content with natural language prompts like:
“I’m in the mood for a light-hearted comedy that isn’t too long.”
“Suggest some intense dramas that are under two hours.”
“Can you recommend action movies that aren’t too predictable?”
“I’m looking for a suspenseful thriller with a strong female lead.”
The new tool is in beta on iOS in Australia and New Zealand. U.S. streamers will likely gain access in the coming months.
Netflix’s Goal?
Boost discoverability.
Today, Netflix’s top shows account for about 1% of total traffic — meaning most of its catalog is buried. AI could fix that — surfacing hidden gems for viewers and new audiences for creators.
Why Does This Matter?
AI-powered discovery isn’t just a UX upgrade — it’s a business accelerator:
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More engagement reduces churn.
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Deeper catalog use improves content ROI.
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Smarter targeting lifts ad revenue.
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Personalized satisfaction drives organic growth.
It’s a win–win–win for everyone…
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Streamers get smarter, faster recommendations.
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Creators reach wider audiences.
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Netflix wins with higher engagement and higher margins.
Netflix Q1 Earnings
The company reported Q12025 earnings Thursday after the close, beating estimates across the board:
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Revenue: $10.54B (+13% YoY)
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EPS: $6.61, beat estimates by $0.95
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Operating Income: $3.35B (+27%)
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Operating Margin: 31.7%
Netflix reaffirmed full-year revenue guidance of $43.5–$44.5B and a 33% operating margin.
TL;DR — Netflix is printing cash and leverages AI to sharpen its edge.
Let The Charts Speak
After its earnings report, $NFLX gapped +3.4%, trading above its March 25th high — setting a potential “higher high.”
Markets are closed today, but we’ll see what Monday brings.
I broke down the daily chart on video. Watch my chart talk analysis here.
