23% of respondents would definitely or likely drop their Netflix subscriptions if the service added advertising at its current price point or a dollar cheaper.
"We know these people aren't ... meditating or playing with their kids. They're watching stuff, they just happen to not be watching traditional television," he said. Netflix still characterizes the practice as more of a product builder than a moneymaker. In the company's, an analyst asked whether product placement would become a monetizable part of the business at some point.
A spokesperson reiterated that product partnerships are not a replacement for paid advertising, but rather are a way for Netflix to engage with and entertain fans off the service and in the real world. Specifically, Forrester predicts in the report that marketers will shift 10% more budget toward influencer marketing away from agency content creation fees. This move would comes as influencers provide a lower-cost and "high-authenticity" alternative to traditional advertising, analysts said.
Source: Financial Digest (financialdigest.net)
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