After shutting down password sharing, Netflix has made a new decision that has subscribers cringe. If France is not yet concerned, it’s a safe bet that it will not escape this new resolution.
Netflix makes another controversial decision
After deciding to stop sharing passwords between people who are not from the same household, Netflix continues to tighten the screw. Indeed, as we learn varietythe streaming giant has, without warning, removed the cheapest subscription from its formulas on the American continent, Canada and the United Kingdom. This only concerns new subscribers, who will therefore no longer be able to choose this formula. However, subscribers who already use it are not affected by this measure, and can therefore continue to use it.
This is the basic subscription, at $9.99/month, for one user. In France, it is the equivalent of the “Netflix Essential” formula at 8.99 euros/month for an HD screen. For the moment, France is not concerned, but there is a good chance that this decision will become widespread, like that of stopping account sharing.
The purpose of the maneuver is, for Netflix, to enhance its low-cost subscription with advertisements launched last November at 5.99 euros/month for an SD screen. Indeed, for small budgets, there will not be the possibility of choosing an intermediate subscription between the “Essential with ads” and “Standard” formulas at 13.49 euros/month (for two simultaneous screens, in HD). Subscribers not wishing to put a lot of money will therefore turn to the cheapest.
A winning formula
The streaming giant was pleased to have seen its number of subscribers climb after launching its formula with advertisements. In effect, 25% of new subscribers choose this subscription. And this trend should increase in the coming months with the disappearance of the “Essential” formula.
Our starting prices of $6.99 in the US and £4.99 in the UK are lower than the competition and offer great value to consumers given the breadth and quality of our catalog
said a Netflix spokesperson.
With this formula which includes advertisements, the streaming giant earns more money than with the standard subscription at 13.49 euros/month.
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