Survey: 60% of Consumers Willing to Watch Ads in Exchange for Cheaper Streaming Subscriptions
When it’s time to select a streaming service to subscribe to, there’s a lot to consider. One of many deciding factors is ads. Some streaming providers offer several different tiers at which you may subscribe, and each tier has different features. Sometimes, ad-free versions of a streaming service are available, but this comes at an extra cost. Are consumers willing to pay a little extra to skip ads, or is a few minutes of ads worth saving some money every month?
A new Digital Trends study from Deloitte shows that many consumers are happy to watch ads if it means they’re able to cut down on their monthly subscription costs. 60% of those surveyed are okay with watching a light amount of ads for a lower monthly subscription cost. A light load of ads would be six or fewer minutes per hour of streaming.
Some consumers are willing to tolerate even more ads for a free streaming service. 39% of those surveyed said they would watch 12 minutes of ads per hour if the service was free. On the other hand, 40% of those surveyed would pay $12 per month for an ad-free subscription.
The study shows that younger people prefer fewer or no ads. 48% of Generation Z (born between 1997 and 2015) are willing to pay extra for no ads. 46% of Millenials (born between 1981 and 1996) will pay to avoid ads.
A statement from the report reads, “As more consumers use advertising supported digital entertainment services, ad-related preferences and expectations around personalization and privacy vary across consumer segments and media. Some people welcome ads as a way to get more content while managing costs, building their own set of go-to services; others will do whatever they can to avoid advertising.”
Some services that currently offer low prices in exchange for ads include Peacock at $5 per month and Hulu at $5.99 per month.
HBO Max also has an ad-supported tier in the works.
The results from this report may be good news for streaming companies that are interested in offering ad-supported content. This could be a way for services to bring in new customers who are on a tighter budget.