Netflix Changing Plans: A New Era for the Streaming Giant

The streaming giant is shaking things up with a major change that will test the waters before potentially rolling out worldwide. Starting next week, Netflix will begin testing a new plan in three countries - Chile, Costa Rica, and Peru - which could signal a significant shift in the company's approach to its subscribers.

According to a spokesperson for the site, while Netflix has encouraged account sharing among its 222 million subscribers in the past via features like separate profiles and multiple streams, it never intended users to share accounts between households. Instead, it seems that the streaming giant is looking to crack down on password sharing and require those who do it to pay extra.

This move comes as no surprise, given the backlash Netflix faced last month when it revealed plans to start cracking down on password sharing among watchers. The change has sparked a heated debate online, with some subscribers expressing their outrage at the prospect of paying for ads.

'I'll absolutely not pay to watch ads,' said one subscriber. 'I can't stand cable because of all the commercials.' Another added: 'For me, adding commercials is an immediate cancel of service. I don't want to be marketed to all day every day.'

The change is expected to boost adoption of Netflix's ad-supported plans and standard plans in countries where ads are already available. In fact, memberships where viewers have to endure ads have grown nearly 70% quarter-over-quarter, with memberships with ads now accounting for around 30 per cent of all new sign-ups in the 12 countries where Netflix has introduced ads.

Netflix has said that its immediate priority is building its ad membership so that the streaming service becomes an essential buy for advertisers. With this move, it seems that the company is taking a bold step towards making advertising a material part of its business model.

The decision follows a successful move to axe its basic plan in the US, UK, Canada, and Italy earlier this year for new and rejoining members. The basic plan has also been axed from Netflix's offering in Australia.

As the streaming giant continues to evolve and adapt to changing consumer habits, it will be interesting to see how subscribers respond to this new development. Will they stick with Netflix despite the added cost of ads, or will they opt for alternative streaming services? Only time will tell.

Netflix changing plans