Netflix recently held its quarterly earnings call. Following that, the company announced some significant upcoming changes for the remainder of this year and into early 2023.
The company will be officially launching a new subscription tier in November. It will offer users a discounted price.
However, there’s a catch. This new option will include ads. This is something we haven’t seen before from Netflix.
The brand-new subscription package will become available on November 3rd. It will be priced at $6.99/month, which is more than 50% off their Standard package.
Netflix is calling this the “Basic with Ads” Plan. It is scheduled to be available in 12 countries. These include the US, UK, Canada, Mexico, Italy, Japan, and more.
It’s worth noting that this new package does come with limitations.
- 4-5 minutes of ads per hour
- 720p Video Resolution
- Various Content Restrictions
- No Downloading capabilities
Netflix hopes to attract new subscribers with this plan. These are individuals who don’t want to pay the full price. But they still want to stream from Netflix’s extensive content library.
What are your thoughts on Netflix’s new ad-supported tier? Would you consider purchasing the discounted subscription package? Let us know your thoughts in the comment section below!
In addition to the new subscription tier, Netflix also made another big announcement. And this one might cause some frustration among users.
The streaming giant sent a letter to its shareholders. In it, they outlined a new approach to stop password sharing among subscribers.
Netflix has hinted at this before. They even tested it in Latin America, where account owners could add “subaccounts.”
The company also revealed a new Profile Transfer Feature. It will allow those borrowing accounts to create their own profiles.
Here’s what Netflix stated in their notice to shareholders regarding these changes:
We’ve landed on a thoughtful approach to monetize account sharing. We’ll begin rolling this out more broadly starting in early 2023.
We’ve been listening to consumer feedback. We will offer borrowers the ability to transfer their Netflix profile into their own account. And sharers will be able to manage their devices more easily. They’ll also be able to create subaccounts (“extra member”) if they want to pay for family or friends.
It’s not yet clear how much subaccount users will be charged. But it’s estimated to be in the $3-4/month range. That’s pretty close to the “Basic with Ads” package.
The crackdown on password sharing follows a significant drop in subscribers that Netflix experienced in the first quarter of 2022.
It will be interesting to observe what other changes Netflix and other major streaming providers might implement. For now, Netflix account owners and users are facing some big adjustments that could certainly stir things up.
We’d love to hear your opinion on Netflix’s recent announcements. Please share your thoughts in the comments below!
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