Consumers would rather watch ads in video-on-demand content than pay $1.99 or 99 cents for an ad-free show, according to a recent study. When asked what they would rather do if they missed a favorite
show, 62 percent of consumers polled said they would rather get it free on-demand with commercials, compared to 17 percent who would pay for an ad-free version, according to a study by Points North
Group and Horowitz Associates.
"Over time, the $1.99 model will wear thin as consumers get tired of having their credit cards pinged every time they download a replay of 'CSI' that they
could've gotten for free," says Craig Leddy, senior analyst at Points North Group.
The research firm also found that 47 percent of 18- to 34-year-olds are willing to pay $1.99 for
episodes before they air. Downloading a pre-air show "adds to the 'cool' factor," Leddy says.