Netflix Would Lose 25% of Subscribers if The Service Started Running Ads

Years ago, we ran a survey that found most people (79%) would prefer to pay more for Netflix than see advertisements on the streaming service. 

Today, a new survey was released that found this number to remain accurate. 

Hub Entertainment Research has found that 25% of current Netflix subscribers would likely cancel their subscription if Netflix introduced ads into the platform. Just this last month, Netflix caused quite a stir by testing small ads for their own original programming as subscribers binge-watched their favorite shows. Netflix has not rolled the ad program out across all subscribers, and is likely rethinking their strategy following the fan outburst. 

Much like George Bush Senior’s “Read my lips, no new taxes” quote, Netflix brass has said several times that they would never introduce advertising on their platform. But if our numbers are accurate, this decision does likely cost Netflix billions in dollars of potential revenue every year. With nearly 130 million global subscribers, Netflix no doubt could find plenty of advertisers willing to pay top dollar to get access to the stream service’s audiences. 

Netflix stated that the new ads weren’t ads, but instead promotional material for the Netflix library. While we understand the nuance here, anything that interrupts a binge session to promote something not related to the binge session seems like it should qualify as an ad.

Now should people be *that* upset about such a simple attempt to drum up more awareness for Netflix originals? That’s where we don’t have a problem with this concept. Could it be a slippery slope? Sure, but Netflix does produce a ton of originals now, so many in fact that trying to keep up with all of them has become a difficult task. We’re all for Netflix marketing their own shows a little better.

(h/t ADWEEK)