Report: SVOD Subs Don’t Want Video Advertising

Maybe there’s a reason Netflix continues to rebuff suggestions it start streaming video ads to its 150 million global subscribers.

SVOD subs don’t want the intrusion.

New data from London-based research group Differentology found that 72% of SVOD subs in a survey of 2,000 respondents in the United Kingdom don’t want ads mixed in with programming.

Outside of ad-supported VOD services, only Hulu (in the U.S.) streams ads on its basic subscription plan.

The report – first reported by Advanced-Television– found that 23% of Netflix subs surveyed said they would upgrade to an ad-free premium model, should Netflix begin to show ads; 39% of the same group said they would either cancel their subscription or switch to another paid service that did not carry ads.

“While advertising on SVOD services is currently not seen as acceptable by the majority of consumers, 43% of those who expressed a preference agreed that they accepted and enjoyed advertising on VOD and catch-up services, such as ITV Hub,” Dan Brilot, head of insight at Differentology, said in a statement.

Separately, the report found that 66% of respondents have never canceled their SVOD service, with 32% that did re-subscribed to the service in less than 90 days.

About 37% of subs said they would probably join a new SVOD service within six months, while 65% said the addition would be in addition to any existing service.

That additional service could be BritBox, the British-centric platform launched in the United States by the BBC and ITV.

About 44% of respondents said would likely try BritBox – a percentage that rises to 60% among respondents under the age of 35. More than 55% said the addition would be on top of any existing SVOD service.

Indeed, Brilot said 53% of respondents between the ages of 16 – 19, opt for SVOD before live TV. Another 17% of the age groups claim the number of paid SVoD subscriptions in their household will increase over the next three years.

“The mix of low-rolling monthly subscriptions, in addition to episodic content, means SVOD has unusually high levels of loyalty as a category, with one in six claiming to always go to an SVOD service first when deciding what to watch,” he said.

 

 

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