Netflix “no ads” is not a bad golden body, I am afraid I can’t keep it.
Editor’s note: This article is from WeChat public account “drugs” (ID: youhaoxifilm ), compile Su Xing, edit He Runzhen.
Many US users believe that they will pay for more diverse subscription services in the future, but if they only discuss video streaming, even though the platforms and services that users can choose are richer, users may not be fully Received.
Headstream media such as Netflix, Amazon Prime Video, and Hulu want users to digest them, but Internet data consulting center Ampree Analysis predicts that users’ subscription habits will not change significantly in the short term. Data shows that from the third quarter of 2017 to the third quarter of 2018, the average number of video subscription services for US households remained at 2.8.
Besides, because you do not need to deduct any fees for unsubscribing, The new platform is gradually maturing, and the mobility of users between platforms is also growing.
Paul Verna, vice president of eMarketer, an international market research organization, said that the upcoming new platform is likely to attract users through free trials and newcomer registration offers. But if you want to do long-term business, how to retain users is more important than attracting new users. Users who can subscribe to the same platform for a long time are obviously more valuable than users who are transferred between multiple platforms.
In fact, the price war of video streaming has started. The Disney+ subscription price for November is $6.99 per month, and $69.99 for the year. In January of this year, Hulu launched an ad-free version and an advertising version of the subscription service, the former price of 7.99 US dollars, the latter price of 5.99 US dollars. At present, Disney has mastered the operation rights of Hulu, and announced that Disney+, Hulu and its other sports streaming ESPN+ have a package subscription price of $12.99, which is undoubtedly competitive for Netflix.
Verna believes that in the upcoming streaming media war, price will become a key factor affecting which platform users choose,which means that Netflix, HBO, etc. have always been priced. Philippine platformAlso consider the price cut.
In this case, advertising revenue will become an important part of helping the platform to make up for the price cut.
Before, Netflix announced several price increases, and many users expressed dissatisfaction. According to survey data from streaming media observers in January this year, after service price increases, 27% of respondents tend to unsubscribe, and more than half of respondents believe that if they can subscribe at a lower price Service, then they are willing to accept advertisements when they use.
Although Netflix has had price increases in the past while retaining the history of users, as the giants have turned to streaming media, Netflix’s ad-free persistence is likely to be seriously challenged.
In August last year, Netflix said it would introduce ads. In the fourth quarter of the same year, data research firm Audience Project found that If Netflix added ads during video switching, even if the price reduction was made up Measures, more than half of the users still choose to unsubscribe.
According to the survey data of MindnetAnalytics, a US streaming media research organization, in January this year, 70% of users chose to renew even if they introduced advertisements. Only 3% of users chose to cut their love, and the remaining 27% said they were still hesitating.
After being accustomed to ad-free Netflix, ad-free streaming is still the first choice for streaming users in the United States. The Interactive Advertising Bureau (IAB) report shows that 44% of US Internet users prefer to use ad-free subscription services, and 17% prefer ad-subscription subscription services.
In fact, users are not without tolerance for streaming media advertising. Another IAB survey in September last year showed that 73% of streaming media paying users acceptedWhen advertising occurs, 59% of users think that they can accept ads as long as they have what they want to see, and 56% say they can accept ads if the subscription price is cost-effective.
Netflix, which relies on content to pay for it, is not completely Resisting the advertising business, the original series “Fable Story” has been embedded in Coca-Cola and KFC ads, such deep implant costs between 50,000-500,000 US dollars. Netflix’s ads also have a feature that is highly adaptable and has little impact on the user’s viewing experience: the platform uses algorithms to recommend similar content based on the video viewed by the user, and the 30-second ad between the two episodes is skippable.
Hulu’s attitude towards advertising is more open than Netflix’s cautious attitude. Hulu launched a “pause ad” at the beginning of this year, which is the ad that will appear when the video being watched is paused. Hulu’s creative advertising with the taxi software Lyft also received good feedback. CNBC reported that the US financial media reported that Hulu’s creative advertising increased user purchase intention by 74% and increased brand awareness by 89%. %.
Last year, Hulu announced that the number of ad-serving subscriptions increased by 40%, and less than 40% of users were willing to pay more than $4 a month to remove ads. So at the beginning of this year, Hulu further lowered the pricing of advertising services, from $7.99 to $5.99. eMarketer predicts that from 2019 to 2020, Hulu’s total advertising revenue in the United States will grow by 22.7% to more than $2 billion.
However, Hulu will continue to upgrade its general subscription service. The price, from this point of view, relying solely on advertising revenue may not be able to maintain its low-cost service.
For Netflix, Paul Verna believes that advertising is probably the way Netflix has to choose.
Article Source:
eMarketer
original title:
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