Streaming changed the landscape of media consumption, offering an attractive alternative to traditional broadcast television. Viewers could enjoy huge libraries of content to watch whenever they wished and, crucially, ad-free.
The streaming market has changed over recent years. Prices have crept up and streaming platforms have begun to introduce advertisements. The latest change by Netflix may be too much for some consumers.
Changing Times
Every major media company now seems to have its own streaming platform, creating exclusive original content in addition to offering a library of pre-existing media.
Increased spending and more competition mean companies have been looking for new models to generate revenue. To stay profitable, many of the prominent streamers have increased their subscription fees over recent years.
Netflix Price Rises
Netflix once sold itself to customers partly due to its affordability. The streaming pioneer has increased prices steadily over recent years.
Netflix now offers a range of subscription plans, with prices for all set to rise. Additionally, the streamer will be cutting its cheapest, ad-free “Basic” plan entirely. The cheapest available option will now be “standard with ads.”
New Subscription Tiers
Netflix announced in January that it would be retiring the Basic plan from its offering. The change in service was first introduced to customers in the UK and Canada.
In the UK, after the Basic plan was scrapped, three subscription packages were available — Standard With Adverts for £4.99 ($6.60) a month, the Standard package allowing unlimited ad-free access to Netflix content across two devices for £10.99 ($14.50) and Premium which provides the same ad-free access for four devices.
Roll Out of New Subscription Tiers
The phasing out of the Basic plan in favor of an ad-supported tier began last month, and the reception has been far from positive.
Many Netflix users didn’t like being in the position to choose between an ad-supported plan to cheaply access content or having to shell out more money to enjoy the same ad-free service they’ve had for years.
The Final Straw
There has been a lot of vocal criticism of streamers, particularly Netflix, increasing their prices significantly over recent years.
This latest wave of price increases with the introduction of ads as the only way to enjoy a cost-effective subscription was too much for some consumers, who took to the internet to express their dismay and their intention to ditch Netflix entirely.
Not Worth the 30% Price Hike
Taking to Reddit, one Netflix customer wrote: “I am not going to pay for a service to see ads. Period. And Netflix’s catalog is not worth the 30% price hike. 30%?!”
They continued: “Been a loyal customer for over 20 years. This is not soapboxing. [T]his is a complaint about the core service by a sad subscriber.”
Widespread Agreement
The Reddit post received a lot of replies from fellow customers in agreement with the sentiment. Many echoed the idea that the content available simply wasn’t worth the money anymore.
One wrote that they intend to cancel, adding: “Will come back periodically one month at a time when some actually good new content drops.”
Canceling May Bring Change
The commentator also wrote that “Corporate will walk back the decision if enough of us cancel.” This echoed the sentiment of another commenter who opined a service provider that had “forgotten where they came from.”
Others agreed, with one saying: “I’m done. I’ve been a customer since they first mailed movies in 1998!” Another added: “Same! it was a really unique service and provided a really good value back then.”
Price Hikes Taken Their Toll
Another commenter stated that this latest price increase was one step too far and had solidified their decision to cancel their subscription.
They wrote: “I just canceled today after ten years. I already thought $12/mo was a little steep for what I got but I didn’t care enough to change it. But I’m not going up to what, $16/mo for the same service? And I’m not paying $7/mo for something with ads.”
Netflix’s Justification
Despite the vocal pushback from customers, with some speaking with their wallets and ditching the streamer, Netflix justifies the price increase on its website.
Netflix writes: “As we continue to add more TV shows and movies and introduce new product features, our plans and prices may change. We also may adjust plans and pricing to respond to local market changes, such as changes to local taxes or inflation.”
A Changing Market
Consumers may have to accept that the streaming landscape has permanently changed. Gone are the golden days when platforms like Netflix provided a cheap, ad-free way to enjoy movies and TV shows.
Expect to see ad-supported tiers, coupled with ad-free services available at a premium, become the new norm as streamers try to prop themselves up financially. Only time will tell if customers will also be satisfied or whether this will spark a mass exodus of consumers from services like Netflix.
