Wednesday June 22, 2016

74% of Netflix Subscribers Would Rather Cancel Than See Ads

I can believe these numbers because, when you get used to a subscription service that charges $10 a month for no ads, you would naturally be upset if ads were added to that service. Hulu added a third tier to its service that charges a premium for no ads and that was supposed to give it a revenue bump and help it catch up to Netflix. Obviously that plan doesn't seem to be working out very well for Hulu so far.

So where’s a streaming company to find new profits in a tight market? According to some people, the answer is for Netflix to start showing ads, like competitor Hulu does. That would give the company new revenue streams without forcing them to raise prices. Of course, there’s a group of stakeholders that’s still left unaccounted for here: Netflix’s customers. We decided to ask them about the issue.