Research by Differentology has found that 72 per cent of UK SVoD subscribers would reject all forms of sponsorship or advertising on SVoDs.
The VODyssey report surveyed over 2,000 UK consumers and revealed that 23 per cent of Netflix subscribers said they would upgrade to an ad-free premium model if the platform introduced adverts, while 39 per cent said they would either cancel or switch to another subscription.
The study also showed low churn in the market, with 66 per cent of SVoD subscribers claiming to have never cancelled their subscription. Meanwhile 37 per cent expressed desire to take up another service in the next six months, 65 per cent of whom said the new service would be in addition to their existing one.
Differentology head of insight Dan Brilot said: “While advertising on SVoD services is currently not seen as acceptable by the majority of consumers, 43 per cent of those who expressed a preference agreed that they accepted and enjoyed advertising on VoD and catch-up services, such as ITV Hub.
“Models for future SVoD services need to understand legacy relationships with existing broadcasters and their ‘permission’ to advertise on their VoD platforms,” he added.
