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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."

2 of 287 comments (clear)

  1. Re:Same with Youtube by Hadlock · · Score: 5, Interesting

    It turns off ads on youtube for roughly $10/mo USD
     
    We watch most of our evening news as clips on youtube, stuff like the late show with colbert, last week tonight, cnn, msnbc, fox news etc and specialty channels all have ads now when you watch a segment.
     
    Also useful for playlists of music, as we use our TV as a youtube jukebox when pandora isn't cutting it.

    --
    moox. for a new generation.
  2. Re:Growing importance? by mentil · · Score: 5, Interesting

    This raises the question of what's going to happen to video ads once broadcast TV goes away. If everyone's watching commercial-free services like Netflix, then where are people going to see these things? Are advertisers just going to rely on other types of ads, like on web pages? Print is dying as fast, although some audio streaming services have audio ads. Maybe it'll move to sponsorships, with the content producer talking about the product or having product placement.

    --
    Corruption is convincing someone that the selfless ideal is the same as their selfish ideal.