Netflix changes pricing structure
Streaming platform Netflix has announced an updated tiered
membership system in an attempt to combat falling subscriber numbers over the last year.
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The company claim that the main reason driving a loss of memberships is the ability to share account details with multiple people and devices. This means families and couples can split the cost of a monthly subscription.
Currently, people are paying £6.99 a month for the service,
and within that each person that holds the account details can create their own
profile. Within this you can create your own watchlists and recommendations.
As people move away from families, or even break up as a
couple, a lot are seeing their accounts stay with them with no worry of having to
shell out for a separate membership. This is what Netflix are aiming to clamp
down on.
Starting in November, a whole new membership structure will
be in place. The initiative has been trialled in South America over the last
year to a degree of success. Firstly, those currently holding a membership can
continue to pay the £6.99 base rate but can only watch shows on one device at
a time – eliminating the chance of someone in another house sharing the same details.
This will drive people to get their own membership which, at
a time where living costs are sky-high, is likely to put people off. However,
Netflix is introducing a ‘basic with ads’ package, priced at £4.99 a month, allowing
customers a cheaper package but with adverts playing before shows and movies. Some
programmes will not be available on this subscription. However, those with an
existing profile can transfer their personalised watchlists over to a new
account, regardless of if they own the current account they stream on.
They are keeping the basic package in place, but with device limitations.
If you wish to allow more devices to stream at once, then standard and premium
packages are available. Standard will cost £10.99 a month and can allow two devices
streaming at the same time, while the premium package will cost £15.99 a month
but will allow up to four devices to stream at once.
While Netflix is the most popular streaming platform worldwide, these new price increases may drive some people away. Those with multiple subscriptions are beginning to sacrifice one or two to make way for bill increases on the horizon. While a cheaper option with 30-second adverts may seem like value for money, a vast number of people may reconsider renewing their Netflix subscription.