Study: Netflix Could Lose 23% of Its Subscribers If It Started Running Ads

[Tsing]

Advertisements isn't something a lot of Netflix subscribers would tolerate. According to a study by Hub Entertainment Research, the streaming giant could lose as much as a quarter of its customers if it started showing ads.

The exact percentage given is 23%, which would equate to around 14 million subscribers (Netflix has 60 million paid subscribers in the U.S.). Advertisements wouldn't be a total dealbreaker for some if the service agreed to lowering its prices, however.

Only 14% of respondents said they would definitely or probably drop their subscription if it were $2 cheaper than they currently pay. That number fell to 12% at a $3 discount.

The study’s findings were based on a survey of 1,765 U.S. TV consumers between ages 16 and 74 who watch at least one hour of television a week and have broadband in the home.

 

[David_Schroth]

The same people answer this survey as the hypothetical price hike surveys. Then, when Netflix hikes the price, no one actually cancels it that said they did.

 

[ThreeDee]

already dropped them ... interested to see Disney's new streaming service's price points though. Doing Hulu because the wife likes cheezy older shows that were lacking on Netflix ..

 

[Brian_B]

Oh I would definitely cancel. I haven't really minded the price increases for the most part, I still think it's a good value, particularly when compared to Cable/Satellite.

I could see the business case though. Maybe a 25% drop in subs, but if it results in an increase in 25+% revenue due to advertising gains... that pays out.

I'd admit I would miss Netflix and I've enjoyed it for a long while, but I wouldn't look back if they start running ads.

 

[alxlwson]

If it were similar to Amazon ads, a single ad in between episodes, I would be ok with it. More than one 30 second spot per episode would probably push me away

 

[xGryfter]

One add under 30 seconds between shows I'd tolerate if it came with a $2 price drop. More commercials than that and I'm out. There are other ways to watch the few Netflix shows I actually watch.

That being said, I agree with David_Schroth, most people probably wouldn't care enough to do anything more than bitch to there friends about it.

 

[Kwaz]

If it were similar to Amazon ads, a single ad in between episodes, I would be ok with it. More than one 30 second spot per episode would probably push me away

I can't stand those Amazon ads. The more that I see them the more that I want to cancel my subscription.

 

[jardows]

I don't pay for TV to be subjected to commercials. I'm not too happy with Netflix anyway, but they have some content my wife really likes, so we've kept them around. Start putting ads in my face? I won't be paying for your service anymore. Probably will have switched to Disney's service by then - they should have lots more I want to watch than Netflix does.