New, Older Netflix Subscribers Are More Likely to Switch to Ad Tier – But Gen Z Isn’t Interested
28.09.2022 - 20:43
/ thewrap.com
previously reported this month, the embattled streamer has plans to launch its ad-supported pricing tier in November, ahead of competitor Disney+’s own ad-supported model debut in December. Additional details on pricing have not yet been announced, but TechCrunch estimates that the cost could fall between $7 to $9.
(Currently, basic Netflix plans are $9.99 a month, with standard and premium pricing at $15.99 and $19.99, respectively.) Despite mixed opinions on the matter, the data gathered by Samba TV and Harris X indicate that the tier will not present a risk to the company. Roughly half of Netflix users (45%) said they would consider switching to a tier discounted by half of what they currently pay as long as ads totaled five minutes or less per hour.
More than half (51%) would deliberate the shift should the service be free (an unlikely scenario).A further breakdown by age and income illuminated that a majority of Boomers (52%) and almost half of Millennials (48%) would be interesting in shifting to the ad tier, whereas Gen Z, who have more or less grown up on ad-free streaming, are less inclined to do so. Additionally, a majority of those making under $75,000 expressed an interest in moving to the tier as opposed to less than half (42%) of those making over that amount.The ad tier also opens up the avenue for Netflix to bring in more subscribers; nine out of 10 non-users already report watching ad-supported streaming content, with 1 out of 3 of them being under 35, according to a survey of 1,200 non-subscribers.
“The exciting value proposition from Netflix’s upcoming ad model lies in the possibility it offers to bring in net new or lapsed subscribers,” Samba TV CEO and co-founder Ashwin Navin said in a statement. “9
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