The news: Netflix is testing vertical short-form video content on mobile devices to diversify its platform offerings.

• The streamer’s goal isn’t to compete with TikTok since it won’t feature user-generated content (UGC). Instead, videos will include clips from Netflix’s longer-form content, such as live events or stand-up comedy sets.
• The “snackable” short-form videos could engage users who aren’t ready to commit to a full film or TV episode, Netflix CTO Elizabeth Stone said, per TechCrunch.

Key stat: 79% of US Gen Zers say adding a shorts feature to a streaming service would increase their weekly app usage, per Toluna.

Why it matters: Meeting users’ short-form cravings could help Netflix close the viewership gap with YouTube—though it lacks YouTube’s vast UGC supply. Netflix accounted for 8.3% of US streaming watch time in September, second only to YouTube’s 12.6%, per Nielsen.

The feature could align Netflix’s UX with modern viewing habits without abandoning its storytelling DNA.

The opportunity: Focusing on vertical shorts could boost Netflix’s time spent and attract on-the-go viewers who only have a few moments to stream. It could also expand user engagement opportunities—giving audiences the chance to either binge or briefly scroll—and capitalize on the prevalence of movie and TV series clips on both YouTube Shorts and TikTok.

In addition, it could help Netflix—which has a slightly better perceived value among subscribers than Disney+, Amazon Prime, and Apple TV, per Simon-Kucher—keep up its value proposition amid consumers’ softening spending.

That’s particularly important for streaming services considering 40% of US streaming subscribers plan to cancel a service in the next 12 months.

The caveat: TikTok and YouTube are ingrained in users’ short-form habits, and consumers may not instinctively open Netflix if they’re not already in a streaming mindset.

What it means for marketers: Netflix’s move into shorts could create new ad inventory or brand placement opportunities, pairing the brand safety of curated clips with the engagement of short video. Marketers should keep an eye on how Netflix’s short-form ecosystem evolves, as its deep content metadata and contextual targeting opportunities could offer a premium alternative to the volatility of UGC-heavy platforms.