Advertising has become the tax that poor and technically illiterate people pay, NYU Stern’s straight talking Professor of Marketing, Scott Galloway, has said in his weekly winners and losers video.
Galloway, who it must be said appears to be suffering from Joyce Mayne syndrome, pointed out that while during the Olympics there was a global outcry over the number of ads people had to sit through when the truth is that ad density was actually no more than it has been for past events.
Galloway was extrapolating from the results of a survey of Netflix’s 81 million subscribers. The poll found that more than half of Netflix’s subscribers would be willing to pay a $1-$2 premium to avoid watching advertisers. Nearly a quarter of subscribers said they would be willing to pay $2-$3 to avoid advertising.
Based on just $1 per subscriber per month, that would add $1 billion in incremental revenue to the SVOD giant’s coffers.
The reason, according to Galloway, is that people are sick of ads. “Watching Netflix can save you six days a year, compared to watching ad-supported broadcasters,” he said.
“In social media around the Olympics we heard a lot of griping around the amount of ads, when the actual truth is that ad density was no greater. People are just getting used to an ad-free universe. Advertising has become the tax that poor and technically illiterate people pay.”