Streaming company Netflix is changing up its approach. The company, known for its subscription model without ads, is now diving into live sports, video games, and ad-supported content. This move comes as rivals like Disney+, Hulu, and Peaco*ck ramp up their original content offerings.
Last year, Netflix tried curbing password sharing by encouraging users to set up individual accounts. This risky move paid off, helping Netflix announce a record number of subscribers in January. The company’s stock has risen 31% this year so far, “outperforming its competitors.”
However, the boost Netflix has seen from its password strategy might be waning. According to Ross Benes, a senior analyst from eMarketer, “Netflix’s lead in the streaming wars is well-established. But it is unlikely to repeat the huge subscriber additions it witnessed last quarter as password-sharing boosts recede.”
Analysts are eager to see if Netflix’s new direction will pay off when the company announces its first-quarter results later today.
The streaming giant’s strategy became evident when Netflix, despite leading in Oscar nominations, only secured one win for a live-action short film. It seems the company may be stepping away from developing these big-budget shows and films that typically win those awards, which is something it has been known for.
Recently, Netflix has shown interest in licensing more content from other studios. Popular shows like “Seinfeld” and “Sex and the City” are attracting viewers again after appearing on Netflix. The company is also stepping into live sports, securing a 10-year deal to air “WWE Raw,” valued at over $5 billion.
Moreover, Netflix is making a splash in the video game space by collaborating with “Grand Theft Auto,” a popular gaming franchise. This venture into gaming proved successful, according to Netflix co-CEO Greg Peters. “We’re stoked by the performance of GTA,” he said. “We were in the top mobile game downloads for several weeks, which shows it was not only big for us, but big numbers for mobile gaming in general.”
The company’s newer, ad-supported subscription tier is another area of growth. Priced at $6.99 per month in the U.S., this tier has seen rapid growth since its introduction in late 2022, with over 23 million users reported in January.
Netflix’s focus on diversifying its content and revenue streams reflects a broader effort to adapt to a changing streaming landscape. As the company ventures into new territories like live sports, video games, and advertising-supported content, its first-quarter results will shed light on the success of this strategy.
FAQs
Netflix, which began offering a "standard with ads" tier in November 2022, said the plan's "attractiveness" led to a 34% increase in ad-supported subscriptions from the prior quarter. The company reported a record 277.65 million subscribers across all tiers in the second quarter, up 16.5% year-over-year.
What are the significant changes in Netflix? ›
Major changes are being made to Netflix, including the cancellation of some U.S. memberships, an increase in tier sign-ups that are ad-supported, the phase-out of the Basic plan, and an expansion into gaming and themed attractions. These changes are intended to improve user engagement and growth.
How does Netflix plan change? ›
Since Netflix is a prepaid service, your billing date will change based on the remaining balance of your last payment. Changing to a lower-priced plan takes effect on your next billing date. You can continue to use the features of the higher-priced plan until your next billing date. You can cancel Netflix at any time.
How much is Netflix 2024 per month? ›
Netflix Prices in 2024
Additional tiers include $15.49 for Standard service, which includes 2 screens, and $22.99 for Premium, which includes 4 screens as well as upgraded HDR/4K resolution.
Can I share my Netflix account with family in a different home? ›
A Netflix account is meant to be shared by people who live together in one household. People who are not in your household will need to use their own account to watch Netflix. Learn more about sharing Netflix. Account owners can buy an extra member slot and invite people outside their household to use Netflix.
Why is Netflix discontinuing Basic Plan? ›
To attract more subscribers to its ad-supported plan, Netflix is discontinuing its most economical ad-free subscription. New signups are stopped, however current subscribers can continue with their current plans. Revenue and subscriber growth for the company are still increasing.
What needs to be improved in Netflix? ›
Pain Points
- Discovering Content. need variety of content, need help/suggestions on which content to watch.
- Need to Watch for long hours.
- Trouble watching together with family friends on a single screen.
- Expensive subscription.
Thanks to its sheer variety and number of new things to watch, Netflix also gives you the most bang for your buck. Due to its features, user-friendliness, and robust, variety-filled catalog, Netflix won an Editors' Choice Award for 2023, a distinction previously earned in 2021 and 2022.
What are the changes to Netflix users? ›
Under Netflix's updated password-sharing rules, it's fine for multiple people to use and share one account, provided they all live together. So if you're a family or a friendship group that lives together under the same roof your viewing won't be affected. You can keep sharing your account as one household.
Why does Netflix keep changing my plan? ›
As we continue to add more TV shows and movies and introduce new product features, our plans and prices may change. We also may adjust plans and pricing to respond to local market changes, such as changes to local taxes or inflation.
Note:After stopping Netflix on a different device, you may need to wait 5-10 minutes before you can watch on your device. Or, upgrade your Netflix plan to allow more devices to watch at the same time (up to 4 with the Premium plan).
Why is my Netflix bill so high? ›
There are a few reasons you may be seeing a charge that is more than you expected. Taxes - Depending on where you live, you may be charged taxes in addition to your subscription price. Fees - In some countries, card companies may charge an extra fee for cross-border transactions.
Which Netflix package is best? ›
The Standard with ads plan is suitable for occasional viewers, while the Standard plan is ad-free and allows for streaming on multiple devices. The Premium plan is recommended for large families and offers 4K streaming and downloads on up to six devices.
How to get Netflix Premium for free? ›
Netflix does not offer free trials, but you have the freedom to change your plan or cancel online at any time if you decide Netflix isn't for you. There are no contracts, no cancellation fees, and no commitments.
Is Netflix getting rid of their standard plan? ›
It isn't necessarily a surprise that Netflix is ending the tier altogether. Last summer, Netflix did away with the plan for new subscribers. The company has since phased out the Basic tier for subscribers in Canada and the U.K. with the U.S. and France next to see it disappear.
Why does Netflix say change plan to watch? ›
Go to Your Account on netflix.com to change your plan. It usually means your device needs to be updated, or that it doesn't work with ad-supported Netflix plans. To fix the problem, follow the steps for your device. This error happens if an ad-supported plan can't be used with your device.
Is the 6.99 Netflix plan worth it? ›
The mighty red N has been the No. 1 streaming service for years for a reason—it's consistent in quantity and quality. At a base price of $6.99 a month, Netflix's ad-supported plan delivers a thunderous bang for your subscription buck.
Is the Netflix $11.99 plan discontinued? ›
The basic plan was $11.99 per month, and had already been phased out for subscribers in Canada and the U.K. The company stopped allowing new sign-ups for the basic plan in July 2023, but existing subscribers were allowed to keep the plan until now.
Is there really a difference in Netflix plans? ›
Netflix offers three different plans, and determining how much Netflix costs comes down to figuring out which plan you're interested in. The three plans have big differences, including streaming resolution, number of supported members, and whether you'll be stuck watching ads during your favorite show.
