Millennials are willing to see ads on subscription services if it means they get to pay less for it

Millennials would be willing see ads. Image, Stan.
  • Deloitte has released a new report that found millennials are willing to have ads on subscription services if it meant the service was cheaper.
  • The report also found that 50% of respondents needed more than one subscription service.
  • And of those who cancelled or switched their subscription services, 19% said it was because they wanted content from a different service.

A new Deloitte report has found that while millennials love how subscription-based streaming services don’t have ads, they are willing to put up with ads if it means the services will be cheaper.

While we all know that advertising is a part of watching TV, listening to the radio or reading a newspaper, in general, paid subscription services like Netflix, Stan or Amazon Prime Video, mean no advertising. For many streamers, gone are the days when you needed to wait for an ad to grab a snack or head to the bathroom.

Deloitte’s 2019 Media Consumer Survey found that 89% of subscription-video-on-demand (SVOD) subscribers — think Netflix subscribers — “value that their service allows them to watch content without commercials.”

The Deloitte report was based on data from more than 2000 people surveyed in Australia and focused on four generations: trailing millennials (14-29 year olds), leading millennials (30-35 year olds), gen Xers (36-52 year olds) and baby boomers (53-71 year olds) and matures (72+).

It found that millennials could be enticed into watching ads if it meant a cheaper subscription service. According to the report, just more than half of millennials “said they would be willing to view ads with streaming services if it reduced the cost of subscription by at least 25%.” That is higher than the 40% of respondents across all age groups who would put up with ads in exchange for a discount, the report added.

According to the Sydney Morning Herald, Stan has no intention of introducing advertising on its platform. And while Netflix increased the price of its premium plan in Australia earlier this month, its focus — according to its website — is about “flat-fee unlimited viewing commercial-free.”

Australians have an overwhelming amount of streaming options

With the growing number of subscription services in Australia, it means more fragmented — and potentially more complicated — streaming landscape.

According to Deloitte, there are more than 12 TV and movie streaming services in Australia — Netflix, Stan, Amazon Prime Video, SBS on Demand and 10 Access to name a few — along with eight music streaming services, including Spotify and Apple Music.

Plus, there are more subscription services coming to Australia in November such as Apple TV Plus and Disney+.

According to Deloitte, half of respondents (50%) who have an SVOD subscription said they need more than one streaming service to access the video content they are looking for. On average, they subscribe to 1.5 services.

And having all these streaming services adds up. If a household wanted Disney content for the children, as well as Game of Thrones and Stranger Things, English Premier League soccer matches and ad free music, it could add up to upwards of $70 a month because of all services, Deloitte reported.

In addition, consumers are constantly moving between services — sometimes holding many subscriptions at once, the report said. Of the respondents who cancelled or switched streaming services, 19% did so because they wanted content from another service.

And it’s becoming trickier to find out what exactly is on these services, with 46% of respondents finding it hard to know what content is on which service, while 75% want to be able to search for all content in one place, the report said.

Deloitte highlighted that making content much easier to find is important to consumers, on par with having a huge library of content and having exclusive and original content available.

“Content providers will need to balance optionality and flexibility with the clearly stated preferences from consumers – simplicity of discovery, navigation, and access,” Deloitte said in its report.

So while it’s fun to dig deep and discover shows you love to watch, getting them all in on place is becoming harder and harder. And costing you more and more.

Business Insider Australia has contacted Stan and Netflix for a comment.

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