Commercials could nix Netflix viewing
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Joseph O'Halloran
| 18 January 2019

A report into traditional TV, online video and streaming from AudienceProject has offered proof, if it were needed, that Netflix is right to focus on growing through its investment in content rather than considering hosting advertising any time soon.

The AudienceProject Insights 2019 study collected data through online surveys in the UK, US, Germany and Nordic countries in Q4 2018. The respondents were selected from panels consisting of more than 1.5 million panellists and weighed to be representative of the more than 16,000 respondents who completed the survey.

The survey found that has found that 57% of consumers would cancel their Netflix subscription if the company were to add commercials into its streaming service. Furthermore, when asked whether they would stop watching Netflix content featuring ads even if the subscription price was lowered, 42% of respondents still confirmed that they would tear up their contract as a result.

In the UK, Netflix dominates streaming taking 70% of the available audience with 70% of respondents using Netflix to stream or download TV programmes and films, up 30% across 18 months. The SVOD leader was followed by BBC iPlayer (61%), down 8% annually, while YouTube, ITV Player and All4, all of which host ads, saw a decline in viewing during the quarter. Amazon Prime Video saw growth of 33% (used by 44% of respondents) and Sky’s NOW TV which has secured 25% more users in the quarter on an annual basis and was used by 15% of respondents.

As many as 83% of all UK respondents still watch traditional TV on a weekly basis, but 43% claim that this is at a lower level compared to last year. Fewer people stream/download every week compared with those that watch traditional TV (49% of respondents) but 41% claim that they are streaming more compared to last year. The pattern was markedly different amongst younger people, however, with almost as many 15-25 year-olds (63%) streaming/downloading as watching traditional TV (65%).

The TV set was still the preferred streaming device in the UK used by 42% of respondents while streaming is on the rise particularly amongst the young, with almost as many 15-25-year olds streaming/downloading (63%) as watching traditional TV (65%).

“Our findings highlight the growing importance of targeting and relevance in advertising,” commented Martyn Bentley, commercial director UK at AudienceProject. “As consumers have increasing choice over whether or not they see ads, both broadcasters and advertisers alike need to work hard to ensure that campaigns enhance experience, rather than detract - plus it suggests that greater inroads need to be made with Connected TV as a means to help tailor advertising at a granular level.”