Feb 14, 2019

eMarketer: Consumers are Open to Ads on Streaming OTT Video Platforms

A few days ago eMarketer reported that Netflix's 2019 price hike caused 27% of Netflix subscribers to threaten cancellation and more than 50% to claim they are open to an ad-supported option at a lower cost. Previously Netflix was able to increase prices without subscriber outrage, but that was BEFORE so many cheaper, ad-supported competitors were available.

With talk coming out this past summer that Netflix was 'testing' ads or 'show previews' in between episodes and the fact that Netflix looks to lose some of its valuable programs when NBCU, Disney and Viacom unveil their OTT platforms, its looking like an ad-supported option for Netflix might be unavoidable.

All and all it seems the take away here is an "Ad-supported product, delivered in the right way to the consumer, is here to stay.”

Is ad-supported all that bad? The article goes on to say consumers don't mind ads...

"59% said they don’t mind seeing ads as long as they can view content when they want.... and 56% said they don’t mind watching ads if they’re paying less."

 

consumers don't mind ads

 

Read the full article from eMarketer here:
https://www.emarketer.com/content/netflix-is-an-ad-supported-option-inevitable

 Source: eMarketer, Next on Netflix: Advertising?, Feb 11, 2019

 

Topics: tv advertising, Marketing Insights, OTT

Jenny Campbell

Written by Jenny Campbell

With over 10 years B2B marketing experience, Jenny has had her hands in almost every facet of marketing -- from product strategy, to content marketing, to client promotions and market research. When she's not strategizing, Jenny enjoys the little things with her two small children and husband in Cincinnati, Oh.

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