Streamdaily: Should Netflix and Amazon look to ads for more revenue?

How enjoyable would the user experience on Netflix and Amazon Prime Video be if ads were part of the program?

According to a new study by Gfk research, we may be about to find out. The survey found that if those services want to keep on their trajectory of acquiring exclusives and pumping out new originals, they’re going to need a new revenue stream – and that could mean ads.

While the SVODs have risen to sky-high popularity without the help of banner, pre-roll or mid-roll ads (rival SVOD Hulu has an ad-supported option as well as a pricier ad-free offering), the poll of streaming users in the U.S. market found that the revenue will either have to come from ads or higher subscription prices (which, unsurprisingly, aren’t likely to be popular).

The survey dug a little deeper to find rising fees is likely not the answer.

According to Gfk, the biggest factor for customers to subscribe to a particular SVOD was cost. A full 75% of users cared more about cost-effective services than the content on it.



 

Source: http://streamdaily.tv/2016/06/10/should-ne...