Exclusive: As streaming leaders Netflix and Disney prepare to roll out ad-supported subscription tiers, new research from Fandom indicates that most paying customers plan to wait and watch before moving on to cheaper plans.
About 57% of the 1,000 entertainment fans surveyed agreed with the statement: “I’m not interested in subscribing to any subscription service that has ads.” Only 17% agree: “I’m interested in paying less for advertising support if there is no free plan.” While 54% of respondents said they only pay for ad-free media streaming, only 8% went the other way and said they only receive advertisements. About 38% of people reported having a combination of both.
The July 14-18 study is a companion to Fandom’s “State of Streaming” report released last spring. Founded in 2004 by Wikipedia’s Jimmy Wales and Angela Beasley Starling, Fandom tracks a wealth of data on user preferences in film, television, video games and other areas of pop culture. The company claims to receive more than 300 million unique visitors per month and to host more than 250,000 “wikis” or interactive information centers, which gives it an endemic research population. (You can see the full study 𝐆.)
The ad-supported streaming studio asks, “If you had to choose, what subscription level would you choose for the following subscription services?” As a hypothesis, three levels are listed: no advertising, limited and free advertising, and with advertising. In that scenario, 57% of respondents said they would continue to pay for the ad-free version of Disney +, and roughly the same percentage pledged to stay on course with Netflix.
Some price sensitivity is evident in the survey results, which is not surprising given the high inflation expected for consumers in 2022. It would be open to him. But loyalty is a key variable – only 41% said they would be willing to sign up for an ad-supported service they don’t currently subscribe to.
After the move of HBO Max in 2021, Netflix and Disney are changing the usual order in the media industry and adding ad-supported options after launching products that aren’t ad-supported. This evolution was last attempted decades ago by the first cable TV channels. A few years ago in the streaming industry, Hulu and CBS All Access introduced ad-free versions after launching their ad-supported versions.
Disney’s ad-supported debut in December. Netflix, which has partnered with Microsoft to develop its advertising approach, says its new service will hit the market in 2023.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
