Netflix has had a year of adjustments that are greatly affecting its users. At the beginning of 2023, it changed its account sharing policies and no longer allowed users from different households to use the same account. But it’s not the only measure it’s implementing, despite the complaints from its subscribers.
The company has just announced the complete removal of its basic plan in Spain, Germany, Japan, Australia, Mexico, and Brazil. This would be to prioritize accounts with ads, which apparently are much more profitable for them despite not costing subscribers as much. In other words, they would prioritize advertisers over subscribers.
Advertising over subscribers
Our immediate priority is to develop our advertising membership so that Netflix becomes an essential purchase for advertisers,” the streaming service stated in an official document released to the press. Currently, ad-supported plans account for 30% of new subscriptions in the 12 countries where they have been implemented. And they want this trend to continue… by removing their most basic plan without ads.
Netflix’s basic plan already seemed like a rip-off, in reality. It doesn’t allow playing series and movies at more than 720p, a lousy quality standard compared to the 4K offered by platforms like HBO Max or Apple TV+ for the same price or less. It also doesn’t allow downloading content on the platform, which is essential for watching Netflix without needing an internet connection.
So, instead of improving its conditions, they have decided to do the opposite: completely eliminate this plan. This measure will be implemented first in a few countries, but the intention is to roll it out globally with the same idea and prioritize advertisers. In the end, as much as it may seem like a transmedia revolution, we will always come back to traditional television.
