Is Netflix's Subscription Model in Danger?

Investors who think that

has a great business model might want to consider the opinions of those

by the Zogby Analytics.

The company, which surveyed 1,000 U.S. adults, found that 75 percent of them prefer to consume ad-supported content instead of having to pay for ad-free content. While the survey's findings may receive a resounding "duh!" from the

, the results are a stark contrast to the subscription levels for Netflix versus other streaming video services. Netflix currently serves

worldwide. Without a free, ad-supported option available, all of those subscribers pay a monthly fee to gain access to Netflix's massive library of videos. Hulu, on the other hand, receives

for its free service, along with an additional three million users who pay for Hulu Plus. This has to make you wonder: are consumers more willing to pay for ad-free content than they care to admit? Not necessarily. While Hulu is only six years old, Netflix has had more than 10 years to build its customer base. The company has done a remarkable job of convincing some of its DVD-by-mail users to sign up for the streaming service, all the while attracting millions of additional customers that were entirely new to Netflix. Hulu is

in two countries: the United States and Japan. Netflix, on the other hand, can be found in

worldwide. With only two markets available, Hulu has garnered somewhere between

. At one time the site reportedly had as many as

. This could mean that the ad-supported model does not work, that users are abandoning Hulu in droves, and that Netflix will continue to reign supreme.