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."
Read the full article from eMarketer here:
Source: eMarketer, Next on Netflix: Advertising?, Feb 11, 2019