[Consumer study] Would consumers watch Netflix with ads?

By Voxpopme

Note: This study was conducted when the plan for Netflix ads was first reported. For the study that was conducted after Netflix rolled out the new plans, go here.

In October 2022, Netflix announced a lower-priced, ad-supported plan. We asked consumers their opinions about Netflix ads in this consumer study in the United States a few months ago when this plan was first reported.

I like to get things as cheap as I possibly can. So if I had to watch a couple of ads to get my subscription for a lower price, I would be willing to pay maybe $10-13.

The methodology

We completed the entire study of 100 respondents through Voxpopme’s community of on-demand consumers in nine hours.

We combined quantitative and qualitative questions in the study in the platform, and the platform neatly packaged the results in one dashboard.

On the quantitative side, we asked:

What’s your favorite streaming service? (Only those answering Netflix advanced.)
- Disney+
- Hulu
- Netflix
- YouTube TV
- Paramount+
- Amazon Prime
- Other
Would you use a lower-priced plan that includes ads?
- Yes
- No

On the qualitative side, we asked:

Please share why or why not you would use a lower-priced plan that includes ads?
How much would you be willing to pay monthly for a plan, including ads?

The results

Here’s a quick highlight reel of reactions:

The quant results

Sixty-two percent of respondents said they would use a lower-priced plan that includes ads on Netflix.

The qual results

Respondents recorded a quick asynchronous video message for the qual questions – selfie-style, directly from their phones.

The automatic sentiment analysis showed that 37 percent of all statements were on the neutral side, with 30 percent being positive and 33 percent being negative.

Unlike the quant questions – which are self-reported answers – this sentiment analysis pulls from what respondents said in their video responses.

The automatic theme explorer and Word Cloud gave me an idea of some of the most mentioned topics.

At times, I also use the Theme Builder and my knowledge of the subject to build and group themes for topics that I consider related.

The analysis

I like to review the theme explorer first to get an idea of what trends I’m seeing. The Word Cloud is my next step. Then I want to skim through the automatic transcripts and each response.

Reviewing the consumer responses, there was certainly interest in paying less and watching Netflix ads in return for the lower price.

How much people are willing to pay varies. Some said around $5-$6, and others said $10 or more. Netflix pricing had ranged from $9.99 to $19.99 per month, with the new plan rolling out at $6.99.

“Meat is going up, gas is going up, everything around us is going up,” said Chayna, 52, of Indianapolis. “So why wouldn’t I get a cheaper plan for Netflix?”

Others said they specifically signed up for Netflix to avoid ads.

“I’m just so against watching ads, and that’s one of the reasons why I no longer have my Hulu account,” said Johnelle, 41, of Glen Allen. “I had a Hulu account that had ads in it. And to me, I just don’t have the time to waste watching ads if I’m going to watch a specific show or movie. I do not want to be interrupted.”

Some consumers also mentioned that it would depend on where the ads run. The beginning of a show isn’t nearly as intrusive as in the middle of a movie or every few minutes.

“I would be really ticked off in the middle of watching a movie or something, and it just cut out to try and sell me something,” said Cheyenne, 29, of Springfield.

Where to next?

As a next step, we might ask consumers what kind of ad experience they prefer. As several consumers mentioned, they would prefer ads to run in-between shows but not in the middle of shows. Where should ads run specifically and for how long?