Streaming giant Netflix (NFLX) cheered up sofa surfers today by unveiling a new AI-powered tool to help make it easier for them to find their next show.
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AI Movie Guides
At its tech and product event today Netflix unveiled a new search tool utilizing OpenAI’s ChatGPT system to provide users with a ‘conversational discovery experience.’
As reported by TechCrunch, Netflix fans will be able to enter their TV preferences by using natural phrases such as ‘I want something funny and upbeat’ or something slightly more detailed like ‘I want something scary, but not too scary, and maybe a little bit funny, but not haha funny.’
Anyone with relatives visiting for Christmas or trying to introduce a movie night into family life will be familiar with these sometimes frustrating types of requests. So, it may be a relief for some to hand over the responsibility to an AI bot.
According to TechCrunch, the new feature is set to roll out this week to mobile operating system iOS users as an opt-in option. Indeed, Bloomberg has reported that some Netflix subscribers in Australia and New Zealand already have access to it.
Five Star Performance
Netflix is responding to an increasingly competitive AI marketplace where providers are fighting for customers. For example, Amazon (AMZN) has an AI voice search experience on Fire TVs that respond to user inquiries about TV shows and movies.
Netflix however is not stopping with search. It has also talked up plans to use generative AI to update title cards in subscribers’ preferred languages.
AI or not, Netflix is already looking smarter this year. It saw a 13% hike in revenues during the first quarter and it is widely seen as being immune from Trump’s tariff war. Indeed, it is more likely to benefit if the trade spat between the U.S. and China leads to an economic downturn and more people staying at home to search through their Netflix schedules.
Netflix stock was 2% higher in pre-market trading. It is up 30% in the year to date.
Is NFLX a Good Stock to Buy Now?
On TipRanks, NFLX has a Strong Buy consensus based on 28 Buy and 8 Hold ratings. Its highest price target is $1,514. NFLX stock’s consensus price target is $1,165.35 implying an 0.72% upside.
