Netflix and Disney+ are betting on the idea that a cheaper subscription option, supported by a few ads, will help it hold onto subscribers that are otherwise looking to save on costs. But a new report suggests that while many Canadians are open to the idea, a cheaper plan is not the way to bolster video-streaming subscription penetration in Quebec.

Research for the study was conducted by Vividata and PHD Canada in October 2022 with a panel of 1,811 adults demographically representative based on age, gender, region, and household income.

Netflix is the most popular video-streaming subscription service in Canada at 50%, followed by Amazon Prime at 41%, Disney+ with 24% and Crave at 14%. Over two-thirds of Canadians under 35 subscribe to Netflix, which dips to 46% for those 34 to 44, 32% for those 45 to 54-years-old and 27% for those over 55.

In line with subscribers to other services like Amazon Prime and Disney+, 43% of Netflix subscribers would consider watching ads if it means they can pay less every month. Meanwhile, more than half of subscribers to Apple TV (52%) are willing to watch ads, as are 48% of YouTube Premium subscribers and 40% of Crave viewers.

People in Quebec appear more averse to ads, with nearly half (46%) not interested in subscribing to any service with ads. When it comes to Netflix specifically, only 37% of subscribers are willing to pay less by watching ads. People in Quebec are also less likely than other Canadians to subscribe to streaming services in the first place. Though it is the most popular service, only 42% of people in Quebec subscribe to Netflix. This trend is similar for the other major streaming services – 34% for Amazon Prime, 20% for Disney+ and 9% for Crave. That trend does flip for Apple TV (11% in Quebec versus 10% of all Canada) and YouTube Premium (9% and 8%).

The youngest Netflix subscribers are the most likely to go for the cut in monthly fees, with 54% of those 18 to 24 agreeing that they would watch ads to pay less. There does not appear to be direct correlation between age and interest in an ad-supported subscription: half of those 45 to 54 said they watch ads to pay less, compared to 44% of those 35 to 44, 39% of those 25 to 34 and 37% of those over 55.

Meanwhile, 70% of households earning $100,000 per year or more are Netflix subscribers. Half of those making under $25,000 per year and some potentially cash-strapped middle-income earners could use the break in fees.