If Netflix decides to start on running ads on their service, it will not turn out to be a very good business decision. The world’s largest streaming service is now shy of 140 million subscribers worldwide, which blows away the closest competition in this marketplace. They are a pretty good service that many of the people pay for without a thought. But people also have limits, and, according to a whole new study adding commercials will test these limits.
There is no indication as of now if Netflix has been considering streaming ads, but a study from 2017 had revealed they were possibly losing $2 billion or more annually by not running their ads. This is, assuming that the subscribers had been willing to stick around. This is the point with the most recent study, which had been conducted in the U.K.
“The majority (57%) of UK customers would stop watching Netflix if commercials were introduced, and even lowering subscriptions would cause a significant drop off of 42%, according to new research.”
Granted, the study had been conducted in the U.K., and it does not mean that they would lose the same number of subscribers worldwide. When presented with the choice to lose out on what Netflix has to offer, the people who had been surveyed might find the decision difficult.
For many people, the very appeal of Netflix is that it has revolutionised the way that we have watched TV- No ads and No interruptions.
Last year, Netflix had started testing a feature where they show ads for another one of the titles between episodes while the user had been watching content. Even this had angered people, and it looks like the subscribers are more comfortable with the recent price hike that the company had implemented than see commercials.