Following the news that Netflix would be raising its prices for all customers, talks over whether the streaming giant will offer a cheaper ad-supported subscription have started again.
Numerous streamers have introduced a lower-cost tier including Disney+, which is set to roll out its ad-supported plan to international markets in 2023.
However, it appears Netflix doesn’t plan on following suit anytime soon.
Netflix CFO Spencer Neumann spoke on the topic at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco last week.
When asked if its long-standing dedication to offering subscribers an ad-free service could change, the Netflix boss said: “Never say never, but it’s not in our plans right now.”
He continued: “I would love to get a show of hands of people who liked that decision by Disney, but I don’t think I’ll get it.
“It’s not like we have religion against advertising, to be clear.”
But, as said by Neumann, ‘we lean into consumer experience, consumer choice, and what’s great for our creators and storytellers'.
Although this could change down the line, it’s not in Netflix’s plans, with the CFO concluding: “We have a great model in the subscription business, it scales globally.”
On 10 March, the streaming service confirmed that users would be paying more each month, with basic and standard plans set to go up by £1 to £6.99 and £10.99, respectively.
Premium tiers, meanwhile, will increase by £2, taking the total to £15.99 a month.
Customers in Ireland will see their basic plan increase by one euro and two euros for the standard and premium tiers, respectively.
A spokesperson for the company said: "We have always been focused on providing our members both quality and clear value for their membership.
"Our updated prices reflect the investment we have made in our service and catalogue, and will allow us to continue making the series, documentaries and films our members love as well as investing in talent and the creative industry.
"We offer a range of plans so members can choose a price that works best for them."
If you want to find a way to cut your subscription fees down, MoneySavingExpert's Martin Lewis explained that you may be able to downgrade.
Netflix hacks to beat its price hike… https://t.co/5Df9LiNmbr #MartinLewis
— Martin Lewis (@MartinSLewis) January 7, 2021
Speaking on ITV's Martin Lewis Money Show in January, he explained: "What's my key tip? Well, check now what package you are on. You may be able to downgrade.
"A basic package, which isn't moving in price, is £6 a month.
"You can only use one device at a time – multiple devices but only one at a time – and it's only SD [standard definition]. It's not HD [high definition] on that one."
You basically need to work out if you really need to be on the standard or premium plan (and if you really need so many friends and family leeching off your account).
