A big chunk of Netflix consumers could drop the big digital video platform if it changed its business model to include advertising -- even with a decline in monthly pricing.
While 53% say they would keep Netflix if the service drops its subscription fee by two dollars per month, 14% would drop it if it added advertising, according to a recent survey from Hub Entertainment Research. The remainder was “unsure.”
Better results were seen at bigger price declines: At three dollars less per month, 60% say they would keep Netflix, with 12% dropping the service.
Hub also asked consumers what they would choose if prices were raised for a no-advertising plan, but remained the same under a new ad-included plan.
Some 58% said they would go with the service that include advertising, with 20% saying they would spend $3 more a month to continue with the no-advertising service.
Almost a quarter -- 22% -- would do neither, dropping Netflix altogether.
Even at a lower increase of $1 more a month for no ads, 11% of consumers would drop Netflix, not taking either plan. (However, 49% would continue with the current no-advertising service; 40% would sign up for the ad-supported plan.)
“One thing is clear from these results: After one increase already in 2019, any attempt by Netflix to use an ad-supported plan as a reason to hike its ad-free price again could seriously backfire,” says Hub.
Earlier this year, Netflix raised its prices for all its plans from $1 to $2 a month. Its most popular plan rose from $11 to $13.
The data comes from a recent Hub study, conducted among 1,765 U.S. consumers with broadband, who watch at least one hour of TV per week. The data was collected in June 2019.