Netflix has released a new, cheaper tier on its streaming platform that features ads. While it plays significantly fewer ads than regular cable television, almost half of Netflix users switching from ad-free to ad-supported plans feel there is too much ad content.

Ad Length Perception

According to Aluma Connected Media Insights, the opinion on Netflix’s ad length varies depending on whether the customer is new or has downgraded from the ad-free Basic plan. Among new subscribers, 55 percent found the advertisement amount to be about right, while 33 percent found it to be a bit too much, and 12 percent deemed it far too much. However, among those who switched from the ad-free Basic plan to the ad-supported one, only 39 percent thought the ads-to-binging ratio was about right, while 32 percent thought it was a bit too much, and 28 percent considered it far too excessive.

Altered Perception

Michael Greeson, founder and principal analyst at Aluma, stated that ad-free streaming video services like Netflix have altered how viewers perceive ad loads. While having to watch only five minutes of ads per hour is a delightful reprieve from the much heavier ad loads of linear TV, linear TV is not necessarily the advertising benchmark for today’s multi-source viewers.

Different Demographics

Aluma’s research also uncovered differences in demographics between ad-supported and ad-free Netflix users. Half of ad-supported Netflix users new to the service are 65 and older, four times that of ad-free switchers. 25% of ad-free switchers are Hispanic, twice the incidence among new subscribers. New ad-supported users are 33% more likely to live in the Southern US than ad-free switchers. Ad-free switchers are 34% more likely than new subscribers to have children in the home. New ad-supported users are four times more likely than ad-free switchers to be Late Mainstreamers or Tech Laggards.

Conclusion

Subscribers can easily change their plans at any time, so it might be worth testing out Netflix’s ad-supported tier if they don’t mind ads. However, the differing perceptions of ad content and demographics of ad-supported and ad-free users demonstrate that it may not be suitable for everyone. Cord Cutters News will continue to report as more stages of Aluma’s research into how users perceive the ad loads of paid streaming platforms are released.

Frequently Asked Questions

• What is Netflix’s new ad-supported tier and how does it differ from the Basic plan?

  Netflix’s new ad-supported tier is a slightly cheaper option on its streaming platform that includes almost everything the Basic plan does, but with ads. Compared to regular cable TV, the ad-supported plan plays significantly fewer commercials, averaging less than five minutes of ads per viewing hour. However, almost half of Netflix users switching from Basic to ad-supported plans feel there is too much ad content.

• What does Aluma Connected Media Insights do and what research have they conducted on Netflix’s ad-supported tier?

  Aluma Connected Media Insights is a research firm that conducts market research on media consumption and advertising. They have conducted research on Netflix’s ad-supported tier and found that there was a difference of opinion on the ad length depending on whether a customer was new or had downgraded from the Basic plan with no ads. They also uncovered demographic differences between ad-supported and ad-free switchers, such as age, ethnicity, and geographic location.

• What is the cost of Netflix’s ad-supported tier compared to the Basic plan?

  Netflix’s ad-supported tier is $3.00 less per month than the Basic plan, making it a slightly cheaper option for viewers who don’t mind watching ads.

• How do Netflix users perceive the amount of ads in the ad-supported tier?

  According to Aluma Connected Media Insights’ research, almost half of Netflix users switching from Basic to ad-supported plans feel there is too much ad content. For new subscribers to the ad-supported tier, 55% found the advertisement amount to be about right, while 33% found it to be a bit too much, and 12% deemed it far too much. Of subscribers who switched from Basic to Basic with Ads, 39% thought the ads-to-binging ratio was about right, 32% thought it was a bit too much, and 28% opined the amount was far too excessive.