Earlier this year, following its reporting that it lost 200,000 subscribers in the first quarter, Netflix announced that it would do something that it had long resisted doing; launch an ad-supported tier. The company said last month that its plans are still on track, but have been pushed to early 2023, with Microsoft on board as a technology partner.

The move is designed to expand the company’s reach beyond the nearly saturated premium service subscriber pool and to bring in customers who had previously been weary of the higher-priced options. However, the shift in philosophy does run the risk of Netflix cannibalizing its current higher-priced subscriber total. A new survey suggests that the streamer might not have to worry too much about potential defections as one might think.

Whip Media released a new survey this week called “Streaming Satisfaction Report Spotlight on the Ad-Supported Experience,” and in it, current Netflix subscribers were asked how likely they were to switch to a lower cost Netflix tier that came with advertising. To that question, 43% answered “very unlikely to switch” and 29% answered “unlikely to switch.” Only 9% said that they were “likely to switch” and 5% said “very likely to switch.”

“Just prior to fielding the survey, Netflix announced their intention to add a lower cost, advertiser supported subscription option,” Whip Media said in introducing the question. “Our respondents who are currently Netflix subscribers do not appear very interested in switching right now, although we asked the question without the benefit of knowing the price point.”

To date, Netflix has not released many details about the ad-supported tier and has not done any type of marketing or advertising for the new subscription option either. Doing so will likely move the needle in terms of consumer interest in the product, but it remains to be seen by how much.

Analyst Michael Nathanson projected earlier this year that the new tier could increase the company’s revenue by over $1 billion by 2025.

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Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”

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The platform constantly updates its catalog, introducing fresh content alongside timeless classics and international hits. Netflix’s commitment to storytelling has also earned critical acclaim, with award-winning exclusives such as “Roma,” “Marriage Story,” “The Power of the Dog,” “Mank,” and “Ma Rainey’s Black Bottom.” In 2023, their animated film “Guillermo del Toro’s Pinocchio” won an Academy Award for Best Animated Feature, further solidifying Netflix’s reputation for high-quality content.

Recently, Netflix has expanded beyond standard movies and TV titles with the addition of video podcasts, and is also exploring a digital store that would offer third-party streamers within the app.

Netflix offers three plans – stream on 2 devices in HD with the “Standard with Ads” ($8.99) plan, on 2 devices in HD with the “Standard” ($19.99) plan, and 4 devices in up to 4K on the “Premium” ($26.99) plan.

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