Australians are likely to expect decent-sized discounts on subscription services like Netflix if they plan to introduce advertising to their platforms.
This is according to research by Pureprofile, who surveyed 1,425 Australians. The results showed that 88 per cent of Australians would expect a price cut should Netflix, Disney Plus, and other services bring advertising. 58 per cent of respondents would expect a 20 per cent or more discount, with those aged 35-54 most likely to demand larger discounts.
“With subscription streaming services like Netflix and Disney+ poised to introduce advertising onto their platforms, this research is a timely view into how Australian subscribers will react given how accustomed many have come to an ad-free viewing experience,” explains Pureprofile CEO, Martin Filz.
“What is clear is that the great majority will expect some form of compensation – something that has implications for how services price their offerings.”
The research also found that on average, Aussie households have two different streaming platforms, with Netflix (62%), Disney+ (26%) and Amazon Prime (24%) leading the market.
Interestingly, older Aussies are the least likely to pay more to avoid ads, while 52 per cent for 15-24s would pay a premium to keep streaming services ad free.
“We can see generational differences when it comes to attitudes towards advertising in streaming,” notes Pure.amplify general manager, Tasneem Ali.
“With the younger generation having been raised in the digital age, they are more familiar with newer forms of entertainment consumption and seemingly more reluctant to engage with advertising on streaming platforms.
“Interestingly, the results also showed that more younger people would be likely to increase their Free-To-Air viewership in an advertising-supported streaming world. This highlights the likely shift in audiences that will be seen once streaming platforms turn on advertising, and is something that all marketers should be aware of as linear and digital environments merge.”
