This move could backfire

Streaming services like Netflix don’t have it easy these days. More and more new competitors want to score points with customers. Even the big providers have to take action. But the move they are planning could have dire consequences.

Shot across the bow for Netflix: German customers will not accept that

Streaming is expensive, too expensive, many think. In the near future, the costs for subscribers are likely to increase. If you follow the streaming services, advertising could be the solution. But this step could turn out to be a double-edged sword, especially in Germany. In this country, subscribers are not willing to simply accept advertising, even though they are already paying the monthly subscription costs. According to a poll, 66 percent would not accept advertising, even if the subscription fees were cheaper (source: Digital Marketing Expo and Conference 2022/DMExco).

However, both Netflix and Disney+ are said to be ready to introduce advertising. The results of the study should be a wake-up call for them. Of the two-thirds who are opposed to advertising, only 23 percent think a cheaper alternative with advertising would be conceivable. Only 12 percent would accept a surcharge to avoid advertising.

It also depends on the type of advertising: 25 percent could live with it if it runs before or after a series or a film. Only about 14 percent would accept content interruptions – and only if you can skip them, like on YouTube.

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Netflix and Co. should listen to their customers

The survey, conducted for DMExco by Civey, is also a warning: when accepting advertising is not an option, nor paying extra to avoid it, customers may decide that the offer is no longer worth their money. But that’s exactly what Netflix doesn’t want, after all, the number of subscriptions is declining for the first time in ten years.

It has not been said that there will actually be a series of terminations as soon as the advertising on Netflix and Co. starts. But according to Dominik Matyka from DMExco the streaming services risk their great advantage with advertising: For many customers, the freedom from advertising is what is special about streaming. You have to think very carefully before you give it up.