Netflix is planning to make some drastic changes to its subscription plan by including extra fees for outside account access. Due to a significant loss in subscribers this year, as well as increased competition with other large streaming services, Netflix aims to crack down on password sharing with this additional fee for extra accounts outside the home. Netflix also plans to roll out an ad-supported plan for $6.99 a month. While these plans might seem like reasonable solutions for Netflix, they will almost certainly displease subscribers of the streaming platform, making the future of Netflix more precarious. 

Traditional media has met its competitive match with streaming services like Netflix, which offers a variety of movies and TV shows on a single platform. Netflix also makes its own original content, including many popular movies and TV series such as “Squid Game,” helping to improve subscriber loyalty. Netflix is an extremely convenient and intuitive platform, helping viewers easily resume their current favorite show or recommending other titles they might like. 

Despite these platform benefits, the introduction of ad-supported plans and a crack-down on password sharing can easily reverse the platform loyalty gained. While these plans may add to Netflix’s revenue in the short term, they have the potential to harm subscription numbers, thus threatening future revenue amounts. 

Password sharing on Netflix is common and has been for a long time, with Netflix even encouraging the practice in the past. Starting to reverse this view by charging a fee for accounts shared outside of the home will no doubt irritate customers. Netflix would also have to be careful in defining the difference between someone who abuses password sharing for their friends versus an outside account created for family members not currently living in the same home. 

Netflix’s plan for password sharing seems to be the first proposed by a large streaming service, which is another negative aspect of the plan. Netflix is left alone to test their plan and fix the kinks in it, which would probably further irritate customers and prompt them to move to other streaming platforms in the meantime. A short-term flow in revenue from the plan would increase Netflix’s standing financially, but it is unlikely to continue in the future as more people become disillusioned with Netflix.

An ad-supported plan is likely to cause similar irritations. While Netflix’s ad-supported plan of $6.99 per month is cheaper than ad-supported plans for Disney+ ($7.99 per month) and HBO Max with Hulu ($9.99 per month), it is still a new change with which it will be hard for viewers to reconcile. One of Netflix’s traditional draws, after all, is being able to stream a wide range of content without the interruption of advertisements. Watching a movie on Netflix was like having the experience of a movie theater at home. An ad-supported plan might initially add to Netflix’s pockets, but it would take away this unique appeal. It would also make Netflix more similar to other large streaming competitors.

Netflix’s shift toward adding advertisements isn’t a surprising move, since this seems to be a trend for larger streaming services. Netflix’s new plans would spell a sharp end to the freedom that audiences previously enjoyed and would probably cause viewers to either use Netflix less or move to other large streaming platforms where password sharing hasn’t yet been planned for, like Hulu. Larger streaming services like Hulu have also had ad-supported plans in place for longer and audiences are more used to these features. 

Despite the backlash these new plans might induce for Netflix, streaming services will still continue to be around and even dominate traditional TV channels since these services include a greater amount of content, which can in turn draw a larger audience. While ad-supported plans and changes to password sharing policy may draw away some customers from Netflix, over time, people will become accustomed to these changes. The variety of media on streaming services will remain a steady point that will continue to attract people back to their audience. Ultimately, large streaming services like Netflix are here to stay despite any recent changes because of their convenience and the ability to watch anything, anytime, anywhere. 

Saisha Islam, FCRH ’25, is a biology major from New York, N.Y.