Netflix and Disney+ ad-supported tiers are not that attractive, survey indicates
While Apple may probably be venturing into figuring out an ad-supported tier for Apple TV+, Netflix and Disney+ are seeing some unsatisfying results in acquiring subscribers for their ad-supported plans. Variety reports that a recent survey is indicating not many people are willing to go for an ad-supported tier on Netflix or Disney+.
Not many people seem interested in Netflix or Disney+ with ads
It seems that across the board, interest in ad-supported tiers is not as strong, as indicated by a recent survey conducted by SmithGeiger:
(Image Source - Variety) Not many current subs are looking to downgrade, it seems
The survey also indicates Netflix's "Basic With Ads" tier is not reaching its goals so far. The cheaper plan with ads was launched back in November. The survey indicates that 5% of current Netflix subs were thinking of downgrading to the ad-supported plan in December, and only 6.5% of non-members indicated that they would join Netflix in the next month because of its ad-supported plan.
(Image Source - Variety) Survey results from non-subscribers for Netflix
On the other hand, Disney+'s ad-supported tier is not doing much better, according to the survey. Results show 19% of the non-subscribers were "very" or "somewhat" likely to pick a Disney+ ad-supported tier at some point (keep in mind, the question did not specify a time frame for subscribing).
(Image Source - Variety) Survey results from non-subscribers for Disney+
6% of current Disney+ subscribers said they planned to downgrade. Basically, a bit more people than Netflix, but still, pretty much a similar percentage.
Overall, by surveying 2,089 people, 13% only wished to downgrade to an ad-supported tier for their subscription plans (these results are not specific to Netflix or Disney+).
(Image Source - Variety) 13% of surveyed people across the board are planning to downgrade
Interestingly enough, when the survey divided people by earnings, those who earned $100,000+ a year were the most likely to downgrade (19%) versus the people earning under $50,000 (11%).
(Image Source - Variety) The people earning more than 100K a year are more willing to downgrade
All in all, this trend shows that the interest in ad-supported subscription plans may not be as high as one would suppose. We will have to wait and see how these plans grow over time (and much more time is needed for some conclusive results, for sure), but for now, maybe Netflix or Disney+ will have some food for thought as to how to make these plans more attractive.
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