In an increasingly competitive business landscape, Netflix has been looking for new ways to secure their edge on the competition. Netflix now has to compete to against the likes of Hulu and Amazon to maintain their stronghold on the tight streaming services market. One avenue in which Netflix could seek to gain more revenue would be to place ads in their programming. Netflix competitor, Hulu, places ads on their streaming content which gives them an additional revenue stream that Netflix does not currently have. While this would theoretically increase revenues, 74% of people say they would rather cancel their subscription than to see ads on Netflix, according to AllFlicks.
AllFlicks conducted a survey of 1,200 Netflix customers in order to gain some insight as to the user preferences. As one would imagine, the customers want a large amount of quality content, low subscription fees, and no advertisements. While this is impossible in order for Netflix to sustain a competitive business, the survey results concluded that people would rather pay more than to have commercials interrupting their movies and shows.
90% of people answered that they would rather pay more for Netflix than to see ads. Whether or not people want to pay more, they are going to be forced to pay more as the company announced recently that subscription costs will go up to $9.99 per month. This move alone could potentially cost Netflix around half a million subscribers.
While people are willing to pay a dollar or two more to watch Netflix ad-free, they will have to be pay the extra amount for even less content than Netflix used to have. Netflix has been trying to provide more quality content than sheer quantity as of late, and in doing so the company has had to eliminate a vast portion of the content. Since 2012, the number of movies and shows have dwindled by nearly 40%, going from around 9,000 titles to around 5,100 titles currently.
Would you rather cancel your subscription than be forced to watch ads during your movie/show?