Netflix’ leading position on the streaming market is clear proof that its strategy of focusing on growth through investment in content rather than hosting ads has been right.
However, during summer last year, Netflix did test commercials for other shows between episodes.
A lot of users were not pleased by this to say it the least, but Audience Project study also show how Netflix should be careful about going down this road.
Netflix recently revealed that its worldwide subscriber count has expanded to an all-time high of nearly 140 million users.
A new study by Project Audience claims that Netflix could stand to lose a majority of its subscribers if the service decides to ad adverts breaks to its shows.
“When asked whether the Netflix users would stop watching content on Netflix if the company were to add commercials into its streaming service, more than half – and in some countries up to two thirds – confirm that they would do this,” wrote Rune Werliin of AudienceProject in the company’s blog.
“And even when presenting the Netflix users for a scenario where Netflix lowered the subscription price while introducing commercials, around half still confirm that it would make them stop watching content on Netflix.”
Furthermore, Netflix keeps strengthening its position as the go-to platform when people want to catch up with the latest series and movies. In all countries surveyed, the number of people watching Netflix has increased since last year and it is now the number one streaming service in all countries – except Finland where Yle Areena takes the lead.