In an age where digital platforms are revolutionising traditional models, Netflix is a name that strikes a chord with many. The platform emerged with the promise of challenging conventional rental and television models by offering a flat rate for unlimited content. Today, it seems to be gravitating towards more traditional forms, boasting over 40 million users who pay to watch their favourite films and series, interspersed with advertisements.
It’s worth noting that Netflix launched its ad-supported plan at the end of 2022, but it wasn’t until the following year that the plan was rolled out to a majority of the markets where the service operates. The initial uptake was somewhat slow, with a mere five million users in the first six months of availability. However, as 2023 unfolded, the number of users swelled to 23 million.
Fast forward to mid-2024, and Netflix has almost doubled its user base, which now predominantly subscribes to the basic plan. The traditional plan is a thing of the past in most countries. Now, if you want the bare minimum, you have to opt for the ad-supported plan, which has attracted over 40 million users. This is no laughing matter.
When we talk about users, we refer to paying accounts. Out of the total of 270 million users that Netflix reported in April 2024, 15% are subscribers of the ‘Standard with Ads’ plan. Furthermore, the outlook seems optimistic for Netflix, with more than 40% of new sign-ups in the regions where the plan is available choosing this option.
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While this trend is beneficial for Netflix, it may not be for its users. As the streaming giant continues to grow, so will the prices and the amount of ads. Meanwhile, in Spain, it’s no longer possible to sign up for the basic plan. Users either have to tolerate the ads or pay a considerably higher price, as Netflix’s price restrictions are among the most severe in the industry.
Specifically, the three Netflix plans available in Spain are:
- Standard with ads: €5.49 per month
- Standard: €12.99 per month (with the option of adding an extra subscriber for €5.99 per month)
- Premium: €17.99 per month (with the option of adding an extra subscriber for €5.99 per month)
The first two plans offer the ability to watch content in Full HD on two devices simultaneously as part of their default package, while the latter extends technical support to 4K and up to four devices at the same time, provided they share the same IP address.
This means that users must pay €17.99 per month to watch content in 4K on a single device. Coupled with the decline in the quality of Netflix’s productions in recent years and the better conditions offered by competitors, this could pose a significant challenge. But that, as they say, is another story.
