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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."
If Youtube had ads their viewership would drop a lot too.
it's not 57% it's 56.732%. Let's keep this discussion rooted in reality people.
Some drink at the fountain of knowledge. Others just gargle.
The interesting question is not whether a large portion of their existing subscribers would bail with commercials. That goes without saying. Even if they cut the price massively, one of the major reasons for paying for Netflix is the ability to get good content without commercials, and they know this.
Rather, the interesting questions is whether a lower-cost or free ad-subsidized tier would bring in enough additional subscribers to offset the loss from subscribers in the ad-free tier switching to that ad-subsidized tier.
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No, the findings highlight the fact that consumers don't want advertising. Anyone other than a marketing droid would see this as declining importance of ads. Talk about cognitive dissonnance.
I refuse to pay twice. That's why I have never given Hulu a cent. I don't care how great the shows are, or how much my kids will kick and scream.
They lose 100% of my attention when ads are on anyway.
Step 1. Mute.
Step 2. Look away or look at another device.
Step 3. (Optional) Consider how I could acquire the same content with no ads, any means necessary.
Why the actual fuck are you going to PAY every month for something like Netflix if you're still going to be subjected to commercials? It would make zero sense. if they want to add commercials then they should charge ZERO dollars per month. If you PAY for it then you should get ZERO commercials, plain and simple. If they're not making enough money then raise the damned subscription fee. Otherwise why bother? Just put an antenna on your roof at that point and pay nothing anyway, record everything on a DVR, and skip past the commercials.
This makes me wonder if advertising, on video media, runs a risk of dying out.
Youtube is now offering an ad free subscription.
If NetFlix has such a large chunk of the viewing population then where can you get your product videos into eye balls?
Facebook? Not everyone uses it and you can ignore most things there.
How long until Facebook offers an ad free subscription or does it capitalise on the other channels shutting up shop?
It's not like NetFlix customers don't have an alternative as an en masse return to piracy could be one public backlash,
A balance must be maintained.
This is an interesting study as it raises a lot of questions about the future of screen viewing and advertising's place in it - if at all.
I don't understand what all this hate is about commercials. Without them, I'd never have seen the Geiko Gekko story. And they brought back the Caveman episodes, gloriously spread across my 72" screen!
Regards,
your local insurance salesman
His ignorance covered the whole earth like a blanket, and there was hardly a hole in it anywhere. - Mark Twain
When cable TV first came out one of the selling points was, you are paying up-front so there will be no commercials! Now you can watch maybe five minutes of cable TV without getting a commercial - and people are fleeing. One of the absolute best things about Netflix is the lack of commercials. They have already shown that people will in fact pay up front to avoid commercials. It will be too bad if they submit to the easy route and add commercials, dooming themselves to irrelevance.
+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.
You know, you're absolutely right. If network television could thrive for decades by giving people free programming paid for via commercials, so can Netflix.
So forget it. Netflix. If you add commercials, it better be gratis.
You are welcome on my lawn.
My favorite commercials are those Lincoln ads with Matthew McConaughey, where he plays a man who is slowly going insane. Ever since I realized that's what was going on, I can see that's the only interpretation that makes sense.
You are welcome on my lawn.
How the hell does advertising enhance programming? It always detracts.
I used to subscribe to a film channel in the UK called FilmFour. They mainly showed independent, British and foreign cinema, not films made through Hollywood studios.
They stopped charging for subscription and started to include adverts to try and boost viewer numbers. I saved on my subscription and stopped watching.
I don't want adverts. I especially don't want adverts midway through a film. If Netflix start doing that I'll revert to film sources that let me watch a film, not watch a third of a film then completely destroy any narrative, mood or tension its created by imposing shitty fucking adverts on me.
The other factor of course is that British people are used to watching BBC channels which never interrupt shows (or films) with adverts. We're not conditioned to accept the ubiquitous and abusive advertising practices that make American television so unwatchable.