Netflix’s crackdown on password sharing might not be popular with subscribers, but it’s definitely working. At its most recent earnings call, Netflix revealed that it had added 13.1 million subscribers subscriptions in the three months that ended in December 2023.
That’s the highest number of new sign-ups in any three-month period since 2020, when Covid-19 lockdowns across the globe left millions inside looking for something new to watch.
Under new rules, subscribers need to set a Netflix Household. This serves as a primary location, linked to your broadband connection, for any devices signed-in with your account information.
While you’re allowed to travel with mobile devices, like an iPhone or Android phone, any other Smart TVs, streaming dongles, or Sky and Freeview set-top boxes will warn that you’re outside of your Netflix Household and prompt you to change the associated location ...or add an extra paid member to your subscription at the rate of £4.99 a month per person.
Netflix's Standard with Ads plan offers improved picture quality as well as the ability to stream on two devices simultaneously – something that wasn't possible with Netflix Basic NETFLIX PRESS OFFICE However, it seems most opt to sign-up to their own subscriptions. Undeterred by the prospect of seeing advertisements before their favourite shows, Netflix revealed to shareholders that 40% of new sign-ups plumped for the cheapest plan, which costs £4.99 per month. This ad-supported plan is available in just 12 countries, compared to the 190 total countries where Netflix operates.
If you still want to swerve adverts on Netflix, you could see your subscription costs rising in the coming months, the streamer confirmed to shareholders during the quarterly call.
That’s because Netflix will finally retire its ad-free Basic tier.
Netflix axed its Basic plan for new and rejoining customers back in July 2023, however, if you haven't cancelled your subscription since then, the US streaming service has continued to honour the discontinued plan. Basic costs £7.99 per month and offers ad-free viewing in 720p quality on a single screen.
Speaking to investors, Netflix confirmed: "We're looking to retire our Basic plan in some of our ads countries, starting with Canada and the UK in Q2 and taking it from there."
When the Basic plan is canned in the coming weeks, Netflix subscribers will have to choose between the Standard with Ads plan at £4.99 per month, or the ad-free Standard plan at £10.99 per month. The latter costs an extra £36 per year compared with the defunct Basics tier.
If you do decide to switch to Standard with Ads, it’s not all bad news.
While the move does mean you’ll be subject to adverts during your favourite boxset binge or blockbuster movie, Standard with Ads plan does offer improved picture quality over the Basic plan.
As mentioned above, Netflix Basic was limited to 720p, but Netflix Standard with Ads offers full High Definition (HD) streaming at 1080p. You can also watch and download shows and films on up to two devices at a time — double the allowance with the Basic tier.
Netflix Standard with Ads does not allow subscribers to add additional members at £4.99 per month, this is only available with the ad-free plans.
Sky TV, which includes a Netflix subscription with its basic TV package, switched all new customers from Netflix Basic to the Standard with Ads plan last year.
Virgin Media also includes Netflix with its TV bundles, but it stopped offering Netflix Basic when that subscription tier was dropped for new and returning customers last summer.
The current Netflix subscription plans available in the UK are as follow...
Adverts? Yes, before and during shows and films
Full Netflix Library? No, some titles missing
Picture Quality? 1080p HD
Games? Yes, all mobile games included
Watch On Multiple Devices? Yes, up to two
Downloads? Yes, on up to two devices
Price? £4.99 per month
Adverts? No, never
Full Netflix Library? Yes
Picture Quality? 1080p HD
Games? Yes, all mobile games included
Watch On Multiple Devices? Yes, up to two
Downloads? Yes, on up to two devices
Additional Members? Yes, up to one
Price? £10.99 per month
Adverts? No, never
Full Netflix Library? Yes
Picture Quality? 4K Ultra HD with Spatial Audio
Games? Yes, all mobile games included
Watch On Multiple Devices? Yes, up to four
Downloads? Yes, on up to six devices
Additional Members? Yes, up to two
Price? £17.99 per month
LATEST DEVELOPMENTS
Summarising the latest quarterly results, Netflix co-CEO Greg Peters said: "We largely put price increases on hold as we rolled out paid sharing. Now that we're through that, we're able to resume our standard approach."
So, with the password-sharing crackdown now complete, we can look forward to price hikes from the streamer. Meanwhile, Disney+ has confirmed that it’s looking into similar password sharing restrictions for its subscribers this year.
