Will YouTube Red trump Netflix?

Sarah Homewood
By Sarah Homewood | 23 October 2015

Fifty percent of Australians find the proposition of YouTube Red appealing, according to consumer research from ZenithOptimedia.

After the news broke that Google's online video powerhouse was releasing a premium offering, which gives consumers the  option to pay a monthly subscription to not see any ads, ZO crunched the numbers and found that 50% of people aged between 18-54 found the offering very or somewhat appealing.

Following a poll, in which YouTube Red came up against Netflix, 39% said they would subscribe to Netflix, 20% said they would subscribe to YouTube Red, and a further 11% said they would subscribe to both with the remainder not interested in either.

Luisa Howard, head of insight for ZenithOptimedia, told AdNews the reality is Australians are demanding a new way of consuming content and new types of brand relationships.

“It’s impossible to predict the level of success YouTube Red will enjoy, however early indicators show that Australians find the YouTube Red proposition relevant," she said.

"As Australians become more engaged in video, driven by better content, more content choice and less interruption, we see a more engaged consumer emerging – making content integration, curation and creation a more exciting opportunity than ever for brands.

“Netflix is enabling this desire on television, and now YouTube Red will enable it for online video.”

Ros Alison, head of digital for ZO, noted that YouTube Red extends consumer choice and helps YouTube move into position to compete against premium streaming services like Hulu and Netflix, and while the move isn't going to make a dent on available inventory to advertisers, it doesn't mean that advertisers shouldn’t think about what it means for them.

“YouTube Red is another reminder for advertisers to really think about how people experience advertising on YouTube, and another reason to think about how we can be more relevant and more interesting, and how we work better with content creators for more authentic placement and a better customer experience,” she said.

See the numbers below for yourself:

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