Netflix Members Cancelling Memberships After Huge Plan Change
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Netflix viewers have threatened to cancel their subscriptions due to a change to the platform’s Basic package. A recent email to customers revealed that the streamer is discontinuing its Basic ad-free Plan in the U.K. and Canada by the end of 2024. Those with the basic plan will be automatically switched to the lowest tier, which includes ads during series and movies.
Video Quality Upgrade
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Changes will take effect in the U.K. and Canada on June 4. To make the swap more appealing, Netflix announced that the basic video quality, which is currently at 720p, will be upgraded to H.D. for all users. While this means that series and movies on the streaming platform will look better, so will the ads that are now being added to the viewing experience.
Options Available
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Currently, a Basic Netflix subscription without ads costs £7.99 in the U.K. With the new system, viewers will save more money, as the cheapest service only costs £4.99 per month. The 2024 end date for the Basic Plan is primarily driven by financial factors. The company is projected to earn $1 billion (£797 million) in advertising revenue this year, a staggering 50 percent increase from 2023.
The email from the streamer also mentioned that Netflix subscribers have the option to upgrade to the Standard Plan subscription for £10.99 per month, which allows viewing on multiple devices simultaneously. Meanwhile, the Premium Plan, priced at £17.99, allows subscribers to watch ads in Ultra H.D. on up to four devices at once.
What Happens After The Switch
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After the change, Netflix will only offer two ad-free options in the U.K. and Canada. The Standard Plan costs £10.99 ($16.49) per month and the Premium Plan costs £15.99 ($20.99) per month. Although the change will boost income and appeal to customers who are willing to spend extra for an ad-free service, the company might erode consumer trust by enforcing unpopular changes.
Stateside
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As of this May, Netflix in the U.S. offers three subscription plans with varying features and prices. This includes the Standard Plan with ads at $6.99 per month. It also offers streaming quality up to 1080p full H.D., two simultaneous streams. The Standard Plan without ads costs $15.49 per month, with streaming quality of up to 1080p full H.D., two simultaneous streams, and access to Netflix’s entire library.
The Netflix Premium Plan costs $22.99 per month and offers streaming quality up to 4K Ultra H.D. with HDR and Dolby Atmos. Subscribers can also stream on four devices simultaneously, with access to Netflix’s full library. Like the Standard Plan without ads, members can download items to a limited number of devices and add extra members at an added cost of $7.99 each/month.
Other Changes
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It’s important to note that the Basic plan without ads, previously offered for $9.99/month, has been discontinued for new and rejoining members in the U.S. Existing Basic Plan subscribers will be automatically transitioned to the Standard with Ads plan by the end of 2024.
Additionally, the Standard and Premium Plans are the only ones that allow adding extra member slots. Netflix has also tightened its policies on password sharing, requiring users to pay extra to share their account with individuals outside their household.
Source: Metro UK