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Netflix users will not have ads, 23% will consider canceling: report



Netflix CEO Reed Hastings is depicted on May 3, 2018 in Lille, North France during the first edition of the TV series Mania festival.

Philippe Huguen | AFP | Getty Images

Netflix could get a significant hit on its subscriber numbers if it brings advertising to its streaming service, finds a new report.

23% of respondents to a recent study of Hub Entertainment Research said they would or probably would lose their Netflix subscription if it started running ads at its current price point or one dollar cheaper, according to Streaming Media. This percentage would represent a loss of nearly 1

4 million subscribers from Netflix 60 million paid subscribers in the United States

. Respondents were more forgiving for the ads if Netflix lost prices. Only 14% of respondents said they would probably or probably lose their subscription if it was $ 2 cheaper than they currently pay. That figure dropped to 12% at a $ 3 discount.

The findings of the study were based on a study of 1,765 US television consumers aged 16 to 74 who watch at least one hour of television a week and have broadband at home. 19659002] The Hub study comes as advertising inspectors speculate Netflix will make advertising an important part of its business one day. On a panel under IAB's Digital Content NewFronts in April, Joshua Lowcock media agency UM said he "can't imagine a world where Netflix will be free forever."

Netflix does not run ads, but sometimes products appear in popular shows. The business relationship of these locations is complicated: The company recently told CNBC that it rarely accepts paid placement, but some brands pay a third party to help ease product placements, often at the request of exhibitors.

Netflix announced its latest price hike in January and raised its most popular HD standard plan from $ 11 to $ 13. The company has so far opted for tinkering with subscription rates and offering billions of dollars in fuel debt to its cash burn. Netflix has previously resisted the use of advertising to compensate for its costs. In an interview in 2015, CEO Reed Hastings tells Reuters: "Our focus and our expertise is truly commercial free."

Netflix's growing list of streaming rivals, including Hulu and Comcast's NBCUniversal, builds ad-supported models with a hunch that Netflix wants

Netflix did not respond promptly to a request for comment.

Note: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.

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