Panic spread across the internet recently when it appeared that Netflix was considering adding commercials into its popular streaming service. However a new study says if that were to become a reality, it would be a huge mistake for the company.
Over 1,600 Netflix users were recently surveyed about what they would do if the streaming service began running commercials. 23 percent said they would unsubscribe. So basically a quarter of Netflix's customers would leave. And that's not all. Only 41 percent said they would "definitely or probably" keep subscribing, with 37 percent undecided. So less than half of Netflix subscribes would definitely keep subscribing if they added commercials.
The researchers also asked how people would feel if Netflix began running ads but lowered their subscription price by $3. In that case, only 16 percent would cancel and 50 percent would definitely keep subscribing, which is still probably not what Netflix would want.
This whole controversy started recently when Netflix began showing promos for their other shows after people finished watching an episode or movie of something else on the streaming service. The ads were skippable, and the company said it was an experiment to see how people would respond. And the overwhelming response was negative.
Of course, it may be inevitable that Netflix will eventually add commercials. While Netflix continues to grow its subscription base, it's also constantly spending more and more money to acquire content as well as produce their own TV shows and movies for the site. At some point they'll no longer be able to add enough subscribers to cover the increasing costs of operating the site. So either they'll have to scale down, or they'll need to find new streams of revenue.
Let's just hope that's not for a long time though.