How much is ad-free streaming worth to you? A new study has found that the majority of people are willing to sit through ads if it means a lower price each month for their streaming service of choice—including Netflix.
Hub Entertainment Research’s TV Advertising: Fact vs. Fiction report found that 57% of those surveyed could tolerate some ads and 26% were not bothered by ads at all. When a $4 or $5 decrease in monthly subscription fees was suggested, 58% of those surveyed stated that they would prefer the cheaper option with pre-roll ads on streaming services like Netflix.
The study states that it’s not if the ads are present while watching, but how they are presented that matters most to the consumer. Of those surveyed, 47% felt that 5 or less ads during a commercial break was a reasonable amount, whereas 6-10, or 11+ commercial slots was considered to be an unreasonable amount by most. The study also shows that attention usually decreases when ad slots are increased, making 5 the best number for advertisers and viewers alike.
While Netflix promises to never sell advertising, it’s interesting to see that viewer preference still lies in a money-saving option—the study concludes that the streaming powerhouse may benefit from a tier system that allows consumers the option to choose.