Netflix Embraces AI and Merchandise as It Rethinks How You Find Shows

Netflix's leadership announced a redesign of how the platform works on TVs, adding AI-powered search and branching into physical goods like branded popcorn. The moves signal that the streaming company is looking beyond content acquisition to keep users engaged as the market grows more crowded.

Chief Product Officer Eunice Kim and Chief Technology Officer Elizabeth Stone revealed the changes, starting with a cleaner TV interface that Netflix describes as "simpler, easier, and more intuitive" — though the company has not disclosed technical details. More notably, Netflix confirmed it is exploring ways to bring generative AI to members' discovery experience, beginning with an AI-powered search feature on iOS rolled out to a small group of beta testers.

How AI Will Help You Find Something to Watch

The AI search marks Netflix's first consumer-facing use of large language models. The company has used machine learning for years to power its recommendation system, but this is different: it will let you describe what you want in plain English, and the AI will search through the catalog based on that description rather than forcing you to browse categories.

Netflix hasn't revealed whether it built the AI itself or licensed it from another company. The choice to test on iPhone and iPad first makes sense — phone users have grown comfortable typing conversational queries to Siri and Google, so this interaction pattern feels more natural on a mobile device than on a TV remote.

Netflix is also testing a vertical feed of short clips from shows and movies in the coming weeks, similar to how TikTok works. Instead of scrolling through a grid of thumbnails, you will swipe through short previews to discover content. This is a meaningful shift from the interface Netflix has used since streaming began, where content appears in a grid layout.

Stepping Into Snack Food

Netflix announced a partnership with Popcorn Indiana to sell Netflix Now Popping, a ready-to-eat popcorn line with Netflix branding. This moves the company into consumer packaged goods — physical products sold in grocery stores — rather than just digital entertainment.

Netflix has already licensed character merchandise from hit shows like Stranger Things and The Witcher. This popcorn product works differently: it relies on the Netflix brand itself, not on a specific show, to draw shoppers. It tests whether Netflix has become a strong enough brand that people will buy something just because it says Netflix on the box.

What's Coming This Summer

Netflix's content slate for summer includes several films and shows aimed at keeping subscribers watching during the competitive warm months. Beverly Hills Cop: Axel F reunites Eddie Murphy with the franchise and adds Joseph Gordon-Levitt. A Family Affair stars Nicole Kidman, Joey King, and Zac Efron in a romantic comedy. The historical series Vikings: Valhalla returns for its third and final season.

Netflix is also expanding its mobile game lineup with Too Hot to Handle 3, Cozy Grove: Camp Spirit, and Netflix Stories: Perfect Match. Gaming has been part of Netflix's plans since 2021, though it remains a smaller part of the business than streaming.

Why This Matters Now

The broader context here is that Netflix faces a turning point. The streaming market has matured—most people who want a subscription have one—and competitors like Disney+ and HBO Max have caught up on content quality. Netflix needs to show it can innovate in ways beyond just acquiring more shows and movies.

We have seen this pattern before, when gaming consoles faced the same pressure in the 2000s. Sony and Microsoft both realized that hardware alone was not enough to compete. They expanded into media services, social features, and accessories to create more reasons for people to stay in their ecosystem. Netflix appears to be following a similar path: using AI to make discovery easier, adding merchandise to create more touchpoints with the brand, and redesigning the interface to feel fresh.

The AI search feature carries particular weight. Navigating a catalog of thousands of titles has always been frustrating for Netflix subscribers. If conversational search actually works, it could set Netflix apart from rivals and give people a real reason to choose Netflix as their primary streaming home. That makes this beta test worth watching closely.

Whether these efforts succeed remains an open question. AI-powered discovery could prove transformative or merely convenient, depending on how well it works in practice. The snack partnership may resonate with audiences or feel like a distraction. What's clear is that Netflix has decided to experiment across multiple fronts at once—a sign the company believes it has the technical depth to pull them off, but also a recognition that no single initiative is guaranteed to move the needle.