Netflix apparently wants to bring out the big guns to counteract the negative quarterly figures. As has now become known, the streaming service is planning to integrate new subscription models. For example, there is talk of a rate with advertising. It is not new that Netflix has such ideas. However, the industry leader surprises with the fact that they are likely to be implemented in a timely manner.
New York Times report
Apparently, things seem to be heating up in the Netflix executive suite. This can be concluded at least if you take a look at the latest revelations of the New York Times. The well-known newspaper would like to have found out with reference to internal messages of the enterprise that one works on a fast conversion of profitable new Abomodelle. Behind this is probably, among other things, the fact that the streaming service has lost users for the first time in the last quarter. After many years of steady growth and the gigantic Corona high, a bitter disappointment. The idea of the two new rate options is not a new one. Netflix had already been mulling over which subscription models should be added to the portfolio for quite some time.
The streaming provider wanted to address the problem of so-called “account sharing” in particular. This describes the unauthorized use of an existing Netflix account by a third party. To curb the problem, the company wanted to give users the option of setting up sub-accounts. For a comparatively small fee, other users could then access the profile. That might make more money for the streaming service, but it won’t increase the number of users in the quarterly statement. Accordingly, the company shortly after expressed the idea of establishing a tariff that is financed by advertising. Hereby one would like to lure persons, for whom the monthly basic fee is too high.
Netflix presses the accelerator
So far so good. Really new information is not that the New York Times has brought to light. However, there is a detail, with which now really no one would have expected. The plans are to be implemented much faster than originally assumed. Netflix also pondered over the new possibilities rather than explicitly integrating them into the timely implementation. Based on the insider information of the New York Times, it can now be seen that the new models are supposed to start this year. There is explicit talk of “the last three months of the current year”. This would mean that we could or should expect new subscription options as early as October.
We do not yet know what the subscription with advertising will look like in practice. After all, Netflix has not yet made a public statement on the matter. However, the company will probably take its cue from the competition. For example, ads in the user interface are conceivable. On top of that, we will probably have to reckon with ads while streaming movies or series. Even if the costs will certainly be significantly lower than the basic rate, this will probably reduce the desire for video streaming for many.
Combat to “subscription lurkers”
Hand on heart: do you have your own Netflix account that only you really use and no one else? Or are you even a co-user of a friend’s Netflix account? What is actually considered forbidden in Netflix’s guidelines as soon as you are not in a household is widespread in reality. This has always been a thorn in the side of the streaming service. It is therefore not surprising that Netflix now wants to create facts and introduces so-called “account sharing fees”. Here, sub-accounts can be created for a fee. It is clear that these additional accounts with their own recommendations and login data will not be free of charge. However, it is questionable how high the costs will be that Netflix will charge here. However, it is not only unknown what costs the users of a sub-account will have to be prepared for. Much more important is the question of which means and ways Netflix wants to use to put a stop to the common account sharing. We are curious to see whether the streaming provider’s plan will work out.