As we’ve seen, that’s been shifting. With a new game from companies like Hulu and Amazon, Netflix has seen running deals get pricier and customers get antsier. For a few years now, Netflix’s catalog has been narrowing while its prices have been rising.
So where’s a streaming company to find new savings in a tight market? According to some people, the response is for Netflix to start showing ads like competitor Hulu does. That would give the organization new revenue streams without forcing them to raise prices.
Of course, there’s a society of stakeholders that’s still left unaccounted for here: Netflix’s customers. We chose to ask them about the issue. And, in a survey of further than 1,200 people on Reddit, we got some pretty clear answers.
We took it as a given that most consumers would prefer Netflix to cost as little as possible, be free of ads, and have tons of content. But we know that’s unacceptable, and we know that Netflix’s competitive aspect is getting tougher every day. So we took Netflix’s two most simple paths to new revenue and asked respondents to weigh them facing each other.
“Would you rather pay more for Netflix,” we asked, “or see notifications while you stream?” In the following question, we drilled down further by asking the society that would pay more just how much they’d be willing to shell out.
The results were devastating. Of our more than 1,200 respondents, an incredible 90% said they’d prefer a price hike to Ads. That must gel well with Netflix’s own internal findings since they’ve repeatedly wanted to up their prices rather than go for ads.
But how much more room does Netflix have? The sweet spot appears to be $1-2, which 57% of respondents chose as their higher bound. A further 22% said they could go as high as $2-3 more, and less than a part were willing to go higher.