With the expansion of digital platforms and changing consumer preferences in recent years, the streaming video industry has undergone a significant transformation. The convenience and flexibility it provides to watch the content from anywhere and anytime have led the majority of viewers—not just the younger generation—to shift towards streaming platforms from traditional TV.
With the rise of its demand and adoption among audiences, many of the streaming giants launched ad-supported tiers. And the recent survey conducted by HarrisX and Samba TV shows that the strategy is paying off for many such providers.
According to the survey findings, the majority of consumers who support ad-supported streaming services are the ones who are first-time subscribers and not current users who switched their plans.
To elaborate, the survey discovered that 11% of Netflix users and 19% of Disney's streaming service users possess ad-supported tiers. Only 15% of these customers downgraded from a higher-cost subscription, with the remaining 85% becoming new subscribers.
The findings additionally reveal consumer preferences for advertisements in streaming content. 42 percent anticipate ads appearing at the beginning of a programme; 19% want them in the middle; 16% want them at the very end; and 23% want a combination of all three. The majority are happy with seeing two or three advertisements while watching, but only 6% are fine with spotting four or more advertisements.
Besides, according to the research, the majority of customers would continue with their subscriptions even if the price increased. Only 16% and 12% were willing to cancel entirely, while 18% and 19%, respectively, would move to a less expensive tier with ads.