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Putting a stop to password sharing is not enough for Netflix. The streaming service is now also scrapping low-cost, basic plans in Canada, the UK and the US to boost revenues. There will no longer be 4 in the future but only three subscription options for new customers in these countries.
For years, the ad-free basic plan was the cheapest option at Netflix. The change now introduces a low-cost subscription option with advertising and increases the price of the ad-free basic plan. Customers* will pay $15.49 instead of the original $9.99 for the latter. In the UK, there is a £3 price increase.
Commenting on the latest developments, Netflix says: “We believe our entry prices in these countries […] offer very good value for money given the size and quality of our catalog.”
Steps are also expected in Austria.
It is unclear if and when Netflix will also phase out the original essential subscription in Austria. However, the streaming service’s demeanour suggests similar steps could be taken in other countries. For example, Canada has always been a preferred test market for Netflix to introduce new subscription models and various platform innovations.
Netflix has been struggling with declines in user numbers for quite some time. However, the company seems to have made the right decision by ending password sharing. The streaming service reportedly gained 5.9 million new subscribers from March to June.
It is unclear whether these new users had previously shared their accounts. Netflix CEO Greg Peters is enthusiastic about the development: “We can see that it works. According to Peters, the number of subscribers has increased in all regions.
- source: heute.at/picture: pixabay.com
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