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Netflix Could Lose Almost a Quarter of Its Subscribers If It Started Running Ads, Study Shows

According to a recent Hub Entertainment Research survey, twenty-three percent of respondents said they would definitely or probably drop their Netflix subscription if it began running ads at its current price point or a dollar cheaper. “That percentage would represent a loss of nearly 14 million subscribers from Netflix’s 60 million paid subscribers in the U.S,” reports CNBC. From the report: Respondents were more forgiving of the ads if Netflix dropped prices. Only 14% of respondents said they would definitely or probably drop their subscription if it were $2 cheaper than they currently pay. That number fell to 12% at a $3 discount. The study’s findings were based on a survey of 1,765 U.S. TV consumers between ages 16 and 74 who watch at least one hour of television a week and have broadband in the home. The Hub study comes as advertising insiders speculate Netflix will make advertising a core part of its business someday. At a panel during IAB’s Digital Content NewFronts in April, Joshua Lowcock of media agency UM said he “can’t imagine a world where Netflix will be ad-free forever.”


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