Despite being one of the first companies in the world to start the streaming revolution, Netflix has faced stiff competition from other corporations many of whom leverage legacy content to give their own streaming platforms a leg up. Netflix has recently mulled offering an ad supported tier because of the fact that this is the sort of thing that could potentially end up lowering subscription costs without taking a bite out of their revenue targets for the quarter.
With all of that having been said and now out of the way, it is important to note that around 72% of Netflix customers don’t seem to be interested in low cost subscription tiers that would show them ads. This comes from a survey conducted by Whip Media, and it shows that only 14% of Netflix users said that they were likely to switch to an ad supported version of the streaming service with all things having been considered and taken into account.
This data seems to suggest that Netflix has an uphill battle in terms of competing with other platforms, but in spite of the fact that this is the case it also indicates that the streaming company might see improved revenues before the year is out. Many have criticized Netflix not for its higher than average subscription rates but rather the quality of its content. Hence, Netflix might want to refocus its efforts on improving content offerings by adopting a quality over quantity approach, though this would go against the streaming giant’s strategy up until this point.
The participants in this survey are some of the most dedicated streamers on the market, so their opinions definitely matter quite a lot. However, they only represent a small subset of Netflix’s wider consumer market, and their lack of an interest in ad supported subscription tiers might not be indicative of a wider trend. It will be interesting to see how the year plays out for Netflix since the company has faced numerous issues with account sharing and subscription cancellations that might get worse in the next few months.
Read next: Ads With Contextual Relevance Improve Consumer Purchase Intent by 14%, Here’s How
With all of that having been said and now out of the way, it is important to note that around 72% of Netflix customers don’t seem to be interested in low cost subscription tiers that would show them ads. This comes from a survey conducted by Whip Media, and it shows that only 14% of Netflix users said that they were likely to switch to an ad supported version of the streaming service with all things having been considered and taken into account.
This data seems to suggest that Netflix has an uphill battle in terms of competing with other platforms, but in spite of the fact that this is the case it also indicates that the streaming company might see improved revenues before the year is out. Many have criticized Netflix not for its higher than average subscription rates but rather the quality of its content. Hence, Netflix might want to refocus its efforts on improving content offerings by adopting a quality over quantity approach, though this would go against the streaming giant’s strategy up until this point.
The participants in this survey are some of the most dedicated streamers on the market, so their opinions definitely matter quite a lot. However, they only represent a small subset of Netflix’s wider consumer market, and their lack of an interest in ad supported subscription tiers might not be indicative of a wider trend. It will be interesting to see how the year plays out for Netflix since the company has faced numerous issues with account sharing and subscription cancellations that might get worse in the next few months.
Read next: Ads With Contextual Relevance Improve Consumer Purchase Intent by 14%, Here’s How
