Following its most recent quarterly earnings call, Netflix made some significant changes for the remainder of this year and the beginning of 2023.
In November, the business will formally introduce a new membership tier that will charge subscribers less money.
The catch, though, is that this new choice will feature advertisements—something Netflix hasn’t done before and on November 3rd, the brand-new subscription bundle will go on sale for $6.99/month, which is more than 50% less than their Standard price.
This “Basic with Ads” Plan from Netflix will have a number of limitations such as 720p Resolution, 4-5 minutes of ads per hour and no downloading feature and will be accessible in 12 countries, including the US, UK, Canada, Mexico, Italy, and others.
Netflix wants to attract new customers who will stream content from their large collection without paying the full price.
In a letter to shareholders, the firm announced a new strategy for preventing password sharing among customers.This has been teased by Netflix in the past, and with users having the option to add “subaccounts.”
Additionally, a new Profile Transfer Feature that would let account borrowers make their own profiles was unveiled by the streaming service.
Regarding these impending changes, Netflix released the following statement.
“We’ve landed on a thoughtful approach to monetize account sharing and we’ll begin rolling this out more broadly starting in early 2023…
After listening to consumer feedback, we are going to offer the ability for borrowers to transfer their Netflix profile into their own account, and for sharers to manage their devices more easily and to create subaccounts (“extra member”), if they want to pay for family or friends.”
The crackdown on password sharing follows a sharp drop in subscriber numbers for the service in Q1 2022. Owners and users of Netflix accounts may expect significant changes that will undoubtedly ruffle up the community and it will be interesting to see what other changes may come from Netflix and major streaming providers in the future.
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