Netflix Keeps Hitting New Highs: Can TikTok-Style Feed, OpenAI Search Power Even More Growth?

Streaming giant Netflix Inc NFLX continues to dominate the sector and its stock keeps hitting all-time highs.

Netflix isn't slowing down and is launching a major overhaul to its home page that could help user engagement.

What Happened: While Netflix didn't break out its subscriber figure in the latest quarterly results, revenue growth likely led to more than 300 million paid subscribers and a gain from the end of 2024.

Netflix is ready to help those hundreds of millions of users remain engaged on the streaming platform and get better recommendations for what to watch.

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The platform homepage on mobile will provide a TikTok-style vertical feed of clips and trailers from movies and shows, according to The Hollywood Reporter. Clicking on one of the clips takes a user to that movie or show.

"We've been constantly improving it over the last 12 years, mostly behind the scenes, but now, thanks to a combination of new technology and the expansion of our entertainment offerings, we think it's time to take a giant leap forward," Netflix Chief Product Officer Eunice Kim said of the home page.

Netflix is also using OpenAI to help with search recommendations for users in an effort to be "more responsive to your moods and interest in the moment.”

Chief Technology Officer Elizabeth Stone said the goal is for users to get recommendations using phrases like "I want something funny and upbeat" or "I want something scary, but not too scary" rather than just searching for a comedy or horror film.

Users will see popular titles and award-winning features more prominent on the platform home for TVs. Shortcuts to different categories will be moved from the left side of the screen to the top.

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According to the report, the new home page is expected to be launched in the next few months.

Kim said the new experience will give the company more flexibility in the future.

"We are always going to keep sight of what we think is the best experience for our members, particularly driving discovery and engagement with all of the movies and shows and live events and games that they love."

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Why It's Important: Netflix continues to dominate the streaming space and sees strong engagement. The changes to the home page across mobile and TV will be a good test to see if user engagement increases.

Netflix already features its top-watched TV shows and movies in users’ feeds, but the top hits could see a more prominent placement.

The streaming giant will also be able to show viral clips from shows and movies via the TikTok-style feed, which could see people clicking through to watch full episodes or the full movie, increasing overall minutes on the platform.

As Netflix builds out its live content, the streamer can also find new ways to highlight live content at the top of a feed and highlight events as they are currently happening.

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