NEWS21 June 2022

German users highly critical of advertising on streaming services

GERMANY – Two-thirds ( 66%) of the 2,500 users of online video platforms are not prepared to accept ads in their streamed content, even if that would reduce subscription fees.

According to a survey conducted by market research agency Civey on behalf of Cologne-based digital marketing and tech event DMEXCO, only 23% would consider a cheaper tier with advertising content.

If streaming portals press ahead with introducing ads, a mere 12% would be open to paying more for an ad-free subscription.

The survey also indicates that the potential revenue for broadcasters is negligible, with just 10% of respondents prepared to pay over €5 euros a month more for ad-free content.

Figures for both subscribers and sales for streaming services rose significantly during the pandemic. The favourite streaming platforms for Germans are currently Amazon Prime ( 61%) and Netflix ( 56%), with Disney+ (which only launched in early 2020 ) trailing them in third place at 21%. Sky ( 13%) has around twice as many users as Dazn ( 6%), which only provides sporting content. German providers RTL+ ( 7%) and Joyn ( 4%) occupy the bottom two spots.

Commercial breaks are universally unpopular with those surveyed, with around 25% prepared to tolerate ads before and after a movie or TV show.

Approximately 14% would put up with advertising content at any point if it came with a ‘skip’ function – like on YouTube, for example.

Commenting on the results, DMEXCO chief advisor Professor Dominik Matyka said: “Many users say the freedom from advertising on streaming platforms is a key USP for them.

“Even if survey results don’t automatically correlate with behaviour in real life, the findings are clear: streaming platforms should think very carefully before abandoning their USP. Advertising in return for a cheaper subscription doesn’t appear to be popular right now – at least in Germany.”