About 1,000 people have opted out of advertising for gambling, alcohol and fast food on SBS On Demand, five months into the beta rollout of the initiative.
SBS Media director Adam Sadler said the opt-out has been a "huge success to date".
"It's coming predominantly through the wagering category, but we have had people opt out of alcohol and the fast food category too," he told AdNews.
A recommendation by a parliamentary inquiry just under a year ago recommended banning gambling advertising, which in Australia amounts to $300 million a year, more than half of it on television.
Sadler said SBS' strategy provides not only a service for viewers to opt out if they wish, but also for brands to ensure that they are marketing to audiences open to receiving that advertisement.
"At this point in time, we're just watching and gathering all the data on the current opt-outs, as well as against each category, but we should have a better view on that data by the end of the year," he said.
"Advertisers see it as a super positive initiative and it's been supported by investment leads like [OMG Australia chief investment officer] Kristian Kroon who have got behind it and said these are some of the initiatives that all broadcasters should be considering into the future."
After being unveiled at the broadcaster's Upfronts in November of last year, media agencies praised the move, which is endorsed by Endeavour Drinks and Tabcorp.
Kaimera client director Conor Riordan said it's a "likely welcomed innovation for users and advertisers alike".
“As an advertiser, I’m not about to opt-out but I expect families with young kids at home will be jumping at the chance to avoid all three categories," he said.
OMD Sydney’s group investment director Anna Rudd said SBS Demand Control takes the broadcaster's current UX further.
“While it may be a small proportion of consumers who take up this option, audiences now have control over not just the content they consume but additionally, the advertising they see on SBS on Demand," she said.
PHD Sydney group investment director Christine Chen said it will be interesting to see whether the move to put the onus back on consumers to control not only their viewing, but their ad consumption habits, will see the rest of the industry follow suit.
"It is an alternative approach and I would say it would have minimal reduction in audiences due to the opt-out nature," she said.
Looking at the market more broadly, Sadler that in light of what's been "a very bearish and also bullish market; a two speed economy", SBS since the start of the year has seen a stable linear network share and a growing BVOD proposition.
"We've got our strongest slate of content to date and we're seeing that come through with the audience and share results at the moment, so we're in a very, very positive position, noting how difficult the market is currently," he told AdNews.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.