One of the main attractions of Netflix is that it gives us great content without any interruptions from ads. While the model has been working for the company since its conception, competitors still think that the streaming service will remain ad-free for so long. A new study, on the other hand, showed that bringing ads to Netflix might be detrimental.
According to a survey conducted by Hub Entertainment Research, 23% of respondents said they would definitely or probably drop their Netflix subscription if it began running ads at its current price point or a dollar cheaper. That percentage would represent a loss of nearly 14 million subscribers from Netflix’s 60 million paid subscribers in the U.S.
However, with Netflix’s monthly fees getting higher, respondents were more forgiving of the ads if Netflix dropped prices. Only 14% of respondents said they would definitely or probably drop their subscription if it were $2 cheaper than they currently pay. That number fell to 12% at a $3 discount.
The study’s findings were based on a survey of 1,765 U.S. TV consumers between ages 16 and 74 who watch at least one hour of television a week and have broadband in the home