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Study: Netflix’s Ad-Supported Tier More Likely to Attract Existing Customers than New Subscribers

Trevion Anglin

As Netflix gears up to release its ad-supported subscription plan next year, a recent study done by Civic Science indicates that the eventual customer base for the lower-cost option would mostly consist of existing Netflix subscribers, not new ones.

According to Civic Science’s study — which was conducted in mid-July via interviews with over 1,800 consumers — 32% of Netflix subscribers would likely make the switch to a lower-cost or free ad-supported plan when it becomes available. This same study was conducted twice earlier this year in January and April with a slightly larger percentage of 35% indicating the same intentions in both of those months.

This study is in the ballpark of one released earlier this month that indicated that 72% of current Netflix customers would not be interested in swapping to the commercial-infused subscription option.

Results for non-subscribers were not as promising, however, with the July study showing a 26% interest in the ad tier plan amongst consumers who do not already have a subscription to Netflix. This continued a downward trend from the previous two studies with January’s results coming in at 35% (before the announcement of the forthcoming option), and 32% in April.

Civic Sciences’ study also shows that 65% of U.S. adults currently have access to a Netflix account; and even if roughly one-quarter of non-subscribers join the streamer when the ad-supported tier debuts, it could significantly bulk up the service’s numbers.

Though Netflix is still the world’s largest streaming service with 220.67 million customers, recent months have shown that its position on top is not as secure as it once appeared to be. The streamer’s execs are hoping that the addition of a more attractive pricing option will encourage more budget-conscious customers to join the service, restoring it to its former untouchable status.

Netflix

Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.

Netflix offers three plans — on 1 device in SD with their “Basic” ($9.99) plan, on 2 devices in HD with their “Standard” ($15.49) plan, and 4 devices in up to 4K on their “Premium” ($19.99) plan.

Netflix spends more money on content than any other streaming service meaning that you get more value for the monthly fee.

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