Australians want streaming content fees cut in return for viewing advertisements

Jason Pollock
By Jason Pollock | 2 May 2022
Erik Mclean via Unsplash

The majority of Australian users of content streaming services expect subscription fees to be cut between 5% and 20% for viewing advertising on platforms, according to a survey by adtech Pureprofile.

Both Disney+ and Netflix have announced the introduction of advertisements. The latest survey of 1,425 Australians shows 88% are happy to view ads so long as they get a discount.

“What is clear is that the great majority will expect some form of compensation - something that has implications for how services price their offerings,” said Pureprofile CEO Martin Filz.

Of those polled, 75% were subscribed to one or more streaming services, paying $24 per month on average. The research showed that if ads were introduced, almost 3 out of 5 people would expect to receive a 20% subscription discount or more.

When asked if they were willing to pay more to avoid ads, older Australians were 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.

More than a third 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.

“We can see generational differences when it comes to attitudes towards advertising in streaming,” said Tasneem Ali, general manager of Pure.amplify, Pureprofile’s advertising arm.

“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.

“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.”

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