Amidst the bright future and the humongous rise of OTT platforms, Netflix always finds a way to upset people. If there is a big corporation, it is common to take certain steps to generate more revenue, but if that step contradicts your past campaigns and mission, you end up with a situation like Netflix’s.
Netflix started testing a controversial step in different markets, and Canada became the first victim. Speculations followed regarding a global change of plans where they would be altering their basic plans. The company is now silently phasing out its cheapest ad-free plan in recent events, and this time, they are targeting the U.K. and U.S. markets.
The plan that allowed the audience to stream content in standard definition with no advertisements was priced around $9.99/month in the U.S. and £6.99/month in the U.K.
This drastic change leaves viewers with two choices: settle for an ad-supported plan or move to a more costly ad-free experience. As expected, most viewers will opt for the ad-supported plan to stream their favorite shows.
Netflix introduced the ad-supported plan in November, and by May, there was a significant increase in subscribers. Recent reports indicate that 25% of the new subscribers are opting for this plan.
However, the ad-supported plan comes with some downsides. It does not offer offline streaming options, and viewers can’t add any other members to the account. This limitation is particularly challenging for couples who were used to sharing accounts. Additionally, there are 4 minutes of unskippable ads every hour, which is frustrating for users.
What adds to the frustration is the fact that Netflix launched a campaign called ‘Netflix for All,’ aiming to make Netflix the ‘only’ destination for entertainment. This sudden change in plans leaves people feeling deprived of their comfort, creating a negative image of the platform.
While ad-supported plans are not a revolutionary idea, getting rid of their most beloved ad-free plan so that people will opt for a worse experience is something that will make people hate the platform. Countries like the U.S., U.K., Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, and Spain are already experiencing the advertisement nightmare, and it raises concerns about when India will join them.
