Netflix: Cheaper plan with ads and account sharing restrictions

On May 11, 2022By Garmin Philip

improve numbers

Netflix needs to improve its numbers and plans to offer a cheaper subscription with ads after all. In addition, free account sharing is being tackled more sharply.

News

shutterstock_1547174264 — Advertising in the middle of the Netflix episodes, or logging out when the account shared abroad is recognized: streaming is likely to become more annoying for Netflix fans who want to save money.

An internal document leaked to the New York Time confirms previous rumors. Netflix is planning an advertising-financed and therefore cheaper tariff for its streaming platform, which is currently available from a monthly fee of EUR 7.99. Corresponding reports have so far been denied, since displayed advertising clearly worsens the streaming experience for a paid service.

Netflix apparently justifies the step by wanting to do the same as the competition. In addition, it is said that one simply wants to offer the viewers more options. the New York Times quoted (translated), contrary to the previous one denial: “Every major streaming company besides Apple owns or has announced an ad-supported service. People want lower-priced entry options for good reason.”

It continued, “Hulu and HBO have managed to maintain their strong brands while offering an ad-supported service. There’s no reason why Netflix shouldn’t do the same.” The letter and tone indicate management intends to test and roll out the new options in a timely manner.

There is obviously hope that at least the number of viewers will increase again. Falling values had recently caused a massive slump in Netflix shares on the stock exchanges; alongside problems created by its own investors with a lawsuit against Netflix.

A quicker move toward cheaper access in light of flagging numbers could also mean consequences for a popular practice on Netflix. Netflix has been wanting to prevent or at least restrict so-called account sharing for a long time. Last month, Netflix announced increasing prices for users who share their data with family or friends who do not live in the same household.

Other approaches could be expanded memberships for previous viewers. This in turn would mean tools that recognize account sharing in order to suggest – or enforce – suitable tariffs with higher fees.