MEDIA RELEASE: May 2 2022: New research by global data and insights company,Pureprofile Limited (ASX: PPL) for it’s Pure.amplify advertising arm has revealed that the majority of Australian streaming service users (88%) would expect compensation (ranging from 5% to more than 20% discount) for viewing advertising on platforms, as both Disney+ and Netflix announce the future introduction of ads.
The research polled 1,425 Australians, of which 75% (n=1,071) were subscribed to one or more streaming services. On average, Australians subscribe to two different platforms at the same time, with Netflix (62%), Disney+ (26%) and Amazon Prime (24%) the most popular platforms.
Pureprofile CEO, Martin Filz commented: “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. What is clear is that the great majority will expect some form of compensation – something that has implications for how services price their offerings.”
Currently, subscribers pay $24 per month on average, with the age group of 15-24 years and those above 65 years being the outlier, only paying about $20 a month on average. If ads were introduced, almost 3 out of 5 (58%) would expect to receive a 20% subscription discount or more, with the middle age group of 35-54 years more likely to demand bigger discounts.
When asked if they were willing to pay more to avoid ads, the research shows that older Australians are less likely to pay a premium for ad free services, while more than half (52%) of the youngest age group (15-24 years) would be willing to pay the cost to retain an ad-free streaming experience.
The results also showed that more than a third (37%) said that they would watch more Free-To-Air (FTA) television if ads were introduced on paid streaming services. Younger audiences showed slightly more of a tendency towards FTA: 50% for ages 15-24 and 41% for those aged 25-34.
Pure.amplify General Manager, Tasneem Ali, commented: We can see generational differences when it comes to attitudes towards advertising in streaming. 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.”
Netflix is both the most subscribed to (62%) and most used (63%) streaming service, while Disney+ is most popular among the age group of 15-34 years (one in ten).
The survey also demonstrated that Smart TV (70%) and mobile phones (30%) are the most preferred devices when watching streaming content.