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Netflix 'Would Lose 57 Percent of Their Subscribers If They Added Commercials' (netimperative.com)
According to new research from marketing technology firm Audience Project, the majority (57%) of UK customers would stop watching Netflix if commercials were introduced, and even lowering subscriptions would cause a significant drop off of 42%. Here are some of the other key findings: - In the UK, Netflix takes the lion's share of the streaming audience at 70%, followed by BBC iPlayer (61%). Interestingly, YouTube, ITV Player and All4, all of which host ads, saw a decline.
- TV is still the preferred streaming device in the UK used by 42% of respondents.
- Streaming is on the rise particularly amongst the young, with almost as many 15-25 year olds streaming/downloading (63%) as watching traditional TV (65%) "This is proof, if it were needed, that Netflix is right to focus on growing through its investment in content rather than considering hosting advertising any time soon," Netimperative reports.
Martyn Bentley, Commercial Director UK at Audience Project, comments: "Our findings highlight the growing importance of targeting and relevance in advertising. As consumers have increasing choice over whether or not they see ads, both broadcasters and advertisers alike need to work hard to ensure that campaigns enhance experience, rather than detract -- plus it suggests that greater inroads need to be made with Connected TV as a means to help tailor advertising at a granular level."
- TV is still the preferred streaming device in the UK used by 42% of respondents.
- Streaming is on the rise particularly amongst the young, with almost as many 15-25 year olds streaming/downloading (63%) as watching traditional TV (65%) "This is proof, if it were needed, that Netflix is right to focus on growing through its investment in content rather than considering hosting advertising any time soon," Netimperative reports.
Martyn Bentley, Commercial Director UK at Audience Project, comments: "Our findings highlight the growing importance of targeting and relevance in advertising. As consumers have increasing choice over whether or not they see ads, both broadcasters and advertisers alike need to work hard to ensure that campaigns enhance experience, rather than detract -- plus it suggests that greater inroads need to be made with Connected TV as a means to help tailor advertising at a granular level."
Well, Ad Block stops 100% of Youtube ads for me, so I never even knew Youtube had ads until I started watching it via television instead. Since Youtube started on the computer I suspect most users who have ad block are fine with it, and those without ad blockers may find that other web sites are far more annoying with ads.
Yes. And back in the day they had a free ad-supported tier. But they pulled that away, made it a pay service, but still showed ads. That soured me on them. I could pay for ad-free, but just don't trust that they won't pull a bait and switch.
+1 having commercials on a paid service is annoying... I will pay for content that is friendly to me, or I will tolerate commercials on a free service (within limits -- when it's too much I just close it), but I won't pay to see commercials.
They just have to decide how they make more profits. I don't have to be their customer, and I don't care which way they go. I think the headline is right though. If they add commercials and still charge me monthly, I'll cancel.
NoScript and AdBlock get rid of the ads for free, just sayin'.