As inflation continues to rise in many countries, more consumers are looking for ways to cut back on their spending and create a more affordable monthly budget.
One way to do this is to reduce spending on luxuries, like Netflix subscriptions. However, the cost of a subscription to the service recently increased for the first time in ten years.
The minimum cost for a basic streaming option is now $9.99, a standard package is $14.99, and premium users are now being charged $19.99 per month.
In addition to this, the company recently announced a major crackdown on password sharing, which usually allows customers to save money by sharing accounts with friends and family.
This doesn’t necessarily mean Netflix users will need to cancel their subscription, though. The company recently announced that it will be launching a new streaming tier that costs less in exchange for showing adverts to the viewer.
Until now, Netflix has been completely ad-free. This was a big selling point as, unlike some TV services, there’s no interruption from sponsored content, making it easier to watch shows.
But, a new subscription with ads will soon be offered for customers looking for a lower price. The company hopes that this will encourage more users to stay with the platform, rather than leaving as they can’t afford the cost any more.
In an interview with the Hollywood Reporter, Netflix’s CEO said: “We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising. We adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.’”
There’s no official date for the rollout so far, but after disappointing sales figures last quarter and a loss of 200,000 subscibrers, it’s likely that the company will do all it can to keep its customers and bring in new ones as quickly as possible.