Netflix to launch cheaper subscription plan

Netflix Streaming service

Netflix streaming service is going to launch a cheaper subscription plan with ads at the beginning of November as they try to combat the loss of more than 1 million customers in the second quarter of 2022.

The service from Netflix is reportedly set to debut in the US, France, Germany, Australia, UK and Canada among other countries, and is anticipated to cost between US$7 and $9. Currently, a typical Netflix subscription in the UK costs £6.99 for the most basic plan. This new ad tier plan is expected to cost between £4.99 to £5.99 per month (yet to be confirmed).

So why a cheaper subscription plan with ad’s?

It’s been a tough 2022 for Netflix and subscriber numbers. In the second quarter of 2022, they lost over 1 million subscribers. With the current cost of living crisis, expect more subscriber losses as consumers seek to reduce their outgoings.

Netflix previously stood firm at being commercial-free (i.e. no ads on its platform), but with many streaming providers already using this model – HBO Max already serves ads to users, and Hulu/Disney+ just launched their own ads tier plan, it is no surprise they are looking to launch an ad-tier plan.

So what does this mean for existing Netflix subscribers?

This cheaper subscription plan with ads would be additional to the existing tiers, meaning current subscribers would not see any ads on Netflix.

So Netflix plans will increase from 3 to 4 and may look like this;

  • Ad tier: £4.99 or £5.99 (ads included)
  • Basic: £6.99 (Good video quality in SD (480p). Watch on any phone, tablet, computer or TV.) 
  • Standard: £10.99 (Great video quality in Full HD (1080p). Watch on any phone, tablet, computer or TV.) 
  • Premium: £15.99 (Their best video quality in Ultra HD (4K) and HDR. Watch on any phone, tablet, computer or TV.)

Manage your subscriptions from one app.

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subscription management

Manage your subscriptions from one app.

Say goodbye to forgotten missed trials, missed payments and unwanted charges.

Our thoughts…

Recently, Netflix has seen more competition with, Amazon Prime Video, and Disney+, just to name a few. But there is no other on-demand streaming service that is as well-rounded as Netflix. You’ll find great movies and series, incredible original content, and a sleek interface on Netflix. 

Netflix is generally considered fair value for money, but it really depends on how much you use the services that it provides.

Our verdict: People are not cancelling the service because they can’t afford it. People are cancelling because they are not watching enough of it to justify the monthly subscription fee. However, if you are happy to sit through ads and enjoy your favourite shows for a cheaper subscription fee, then we recommend once this is launched.

Subscribed to more than one streaming or cloud service and looking for a way to manage them without drowning in the stress of remembering payment dates, free trials etc? Check out our ScribePay app that helps you track and manage all your subscription payments, while Premium users can get an instant bank account (UK) and virtual prepaid card (UK) to approve/decline payments on the fly.

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