Streaming’s Slow Enshittification Continues As Netflix Kicks Users Off Cheapest Ad-Free Tiers

from the pay-more-for-less dept

We’ve illustrated repeatedly how as streaming subscriber growth has slowed, streaming giants have had to pivot to some bad industry habits to ensure Wall Street gets those sweet improved quarterly returns. That’s included everything from utterly pointless layoff-creating mergers and price hikes, to annoying new restrictions and a steady increase in ads (that you have to pay more to avoid).

Streaming giants want to drive users to advertising because there’s greater profit potential in charging more for ad placement and collecting user behavioral ad data than there is in subscriptions. So that’s the direction the industry is headed, whether consumers like it or not. Some people don’t mind the ads; personally they just remind me that I’m living in a shallow dystopia.

Last year, Netflix stopped selling its cheapest $11.99 ad-free tier in the U.S. and UK. Last week, it started warning customers still on that plan in the UK and Canada (and soon the U.S.) that the plan will soon be shut down. There is a $7 per month ad-based plan, but you’ll need to pay extra if you want to do anything with it (multiple concurrent streams, 4K, share your password).

Reddit users aren’t pleased:

“$5.99 (sic) with new features … those new features … they’re adverts 🤦🏻‍♂️”

Superficially, the argument is that this is “progress” because users are paying less money for a cheaper tier, for now.

But the price of that introductory ad-based will also rise endlessly, disproportionate to product quality, feature restrictions, and shrinking device support. The need for improved quarterly returns (at any costs) creates a consumer “pricing funnel” that forces consumers to pay more and more money for a product that’s often getting worse (the traditional cable and broadband industries perfected this thanks to monopolization) with a steady uptick in monetizable restrictions.

Want to avoid ads? That’s extra. Want to share your account with your college-aged son? That’s extra. Want to watch things in (now fairly standard) 4K? Sorry, that’s extra. Want privacy? Pay for it. Though it’s going to take some time, Wall Street’s need for impossible, endless growth will result in the recreation of traditional cable — and all of that industry’s worst impulses.

To be clear, consumers still find value in streaming services like Netflix, and it remains an improvement over traditional cable because of cost and the ease of cancellation. But with “subscriber churn,” becoming an issue as cost-conscious users binge watch a service catalog then cancel, I can absolutely guarantee that these companies will find creative new ways to make cancelling annoying and difficult.

I’m not sure what that will look like quite yet. I’m sure it will include making the “cancel” button more elusive, but I also suspect it could come via confusing promotional bundles increasingly tethered to other subscription services; all designed to make cancelling service more of a headache on other fronts.

You’re also going to see a growing number of harmful sector mergers as executives (who have run completely out of ideas) try to boost stock valuations and grab tax cuts via purposeless consolidation. Consolidation whose only result historically has been more debt, higher prices, worse quality products, and layoffs.

And as more and more subscribers get annoyed and head to the exits (and alternatives like piracy), executives will blame absolutely everything (VPNs! China! Regulation! the wokes!) for their inevitable downfall, having learned absolutely nothing in the process.

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Companies: netflix

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Comments on “Streaming’s Slow Enshittification Continues As Netflix Kicks Users Off Cheapest Ad-Free Tiers”

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Ninja says:

I’ve unfolded my Jolly Roger already. I’ll alternate streaming services that fit my monthly budget and download whatever isn’t available at the ones I’m subscribing when the need arises.

This bullshit allied with how low they pay artists themselves, the AI debacle, insane pricing and the likes make me not willing to give a single unity of fcks to the companies behind and their self entitled tears.

Anonymous Coward says:

Re:

I’m right there with you, and I’ll give you one of many reasons why.

We’re fans of a MLB team. We wanted to buy a season subscription to watch all their games and we thought that would be easy and relatively affordable. But no. It turns out that even if we pay for it, we’re NOT guaranteed that we’ll get every game — some will be georestricted, some will be blacked out, etc. Which ones? Guess. No, really, that’s the answer: guess. So there’s no way to know up front how many games or which ones we’d actually get.

Look, all we wanted was 162 games (and postseason) for one team, and we were holding our money in our hand ready to pay, and we can’t get it. There are too many complications and it’s too hard. (And it’s not like we’re technically unsophisticated: 74 years of IT experience between us.)

So now we have a VPN subscription and a lot of links to pirate sites and neither MLB nor the team are getting a penny from us.

Anonymous Coward says:

Re:

I wouldn’t say, even with all the hikes that prices are insane (compared to a movie theater ticket nowadays) but since that most of the subscription money isn’t obviously spent to improve theses services but into dump marketing and useless technologies supposed to “protect” the customers or even to “improve the experience”, it surely a big waste of money to subscribe to any streaming service.

Anonymous Coward says:

Re: Re: Re:

Do you mean pirate static programming like last night’s fav’ TV show, or live sports? Because my anecdotal experience is that there’s a difference in the hoops one has to jump through. Getting last night’s fav’ TV show–easy, even in 4K, often within a couple of hours (or less) of the show being “broadcast”/(released on legit streaming). Download torrent, download file, unpack, watch.

Pirating live sports is a nightmare though, especially if you want to cast it to an actual TV.

Anonymous Coward says:

Somehow, I’ve ended up dropping video streaming services again over time and reverting to the streams provided by broadcasting companies and YouTube. And my kids have recently got interested in my archive of digitized TV shows I videotaped back in the 80s/90s. The video quality sucks, but they still seem to find the shows entertaining.

Anonymous Coward says:

I pirate everything, even live sports.

Haven’t dabbled with those iptv services yet, but mostly just download 2160p copies of the shows I want to watch and then keep them on a hd to seed others and rewatch later. Can’t remember the last service I paid for…maybe Paramount+ but that was a few years ago. Most TV is crap anyway–certainly not something I’d be willing to pay for (alone alone pay AND watch ads for).

btw, All Lives Matter.

Anonymous Coward says:

Re:

I was at a shitty crustpunk bar once getting an after-work beer. One of those shitholes where the bartenders clearly hate you. So the bartender and I were ignoring one another when someone sits next to me and he immediately says, “no. get out.”

And the dude next to me says, “hey i’m not doing anything, i’m a paying customer.” and the bartender reaches under the counter for a bat or something and says, “out. now.” and the dude leaves, kind of yelling. And he was dressed in a punk uniform, I noticed

Anyway, I asked what that was about and the bartender was like, “you didn’t see his vest but it was all nazi shit. Iron crosses and stuff. You get to recognize them.”

And i was like, ohok and he continues.

“you have to nip it in the bud immediately. These guys come in and it’s always a nice, polite one. And you serve them because you don’t want to cause a scene. And then they become a regular and after awhile they bring a friend. And that dude is cool too.

And then THEY bring friends and the friends bring friends and they stop being cool and then you realize, oh shit, this is a Nazi bar now. And it’s too late because they’re entrenched and if you try to kick them out, they cause a PROBLEM. So you have to shut them down.

And i was like, ‘oh damn.’ and he said “yeah, you have to ignore their reasonable arguments because their end goal is to be terrible, awful people.”

And then he went back to ignoring me. But I haven’t forgotten that at all.

Anonymous Coward says:

Re: Re:

Sime years ago in San Diego I was accused by one hotel of having be there before and making trouble when I had never been there before. Someone had stolen my identity. I was the victim but was treated like the criminal.

I got my revenge. After I had to go into Mexico to find a hotel room I did from Mexico, launch an attack and crash their computers back in the USA and then just threw my laptop in the trash before returning to the USA

The cfaa has no jurisdiction in Mexico so I could not have been prosecuted in the USA when I did that 10 years ago because it was donr from Mexico

Anonymous Coward says:

Enshittifucation is even happening now with pirate IPTV srrvices

To get all the channels i want now I have to subscribe to three three different IPTV sites now even though one of them has over 170,000 channels.

I need Canadian TV to watch shows that used to be in the USA, so I need one just for citytv just to get The Price Is Right abd Let’s Make A Deal as well as Kelly Clarkson and Jennifer Hudson. They are ONLY on Citytv

When enshittification starts happening on pirate IPTV you can see the future.

Anonymous Coward says:

Re: Re:

There are spouting up like weeds, you just too see what suits your needs

Some are going crypto only to protect their users in certain countries.

While VIEWING the streams is not a crime in the USA, that is not the case in Britain, south Africa, Italy,the uae, Japan,or the Koreas fur varying reasons

In the UK, it is because you can evade TV Licensing, especially if you use a VPN and tor combined where you cannot ever be traced.

Because the feds are likely watchingy posts from what I have posted here before, I combine VPN and Tor where I cannot be traced

In Italy, south Africa, Japan and the use, it is copyright, abd in North ave south Korea it is because they can be used in one country to watch TV from.the other

In the case of TV Licensing, using one of the services with VPN and Tor means that TV Licensing will never detect that your are watching TV without a TV Licence as what you are doing will be encrypted and cannot be monitored

And sites are using new cryptocurrencies designed to be even.more untraceable ave that will explode in value in a few years meaning the purveyors on these sites may well.brcime among the world’s richest men

These new cryiricurrencies will , I think, mint the first trillionaires and maybe even quadrillionaires in just a few years

Anonymous Coward says:

Re: Re: Re:

In the UK, it is because you can evade TV Licensing, especially if you use a VPN and tor combined where you cannot ever be traced.

Not quite. I found the current rules on the Royal Television Society website, and they say that watching TV online without a license is only an offence if you watch on the BBC website (which doesn’t seem to be possible without a legitimate license number) or you watch something at the same time that it is being broadcast on terrestrial TV (live TV). If you have set up your TV so that it doesn’t receive audiovisual signals through the aerial, then it’s not illegal to use it without a license.

Anonymous Coward says:

Re: Re: Re:2

Iptvgreat, Ipofficial and had-iptv all carry BBC programming. A subscription to one of those plus the cost of a VPN subscription would be less than a TV licence.

And her one that accepts Bitcoin or the newer more secure crypto they are going to, so that your info will never be found by TV Licensing.

That is why some sites are going crypto only to protect uk, UAE, Japan, Italy, South Africa, North Korea, and South Korea users from being identified

Me says:

Seems most people don't even watch the ads

The worst parts about the ads on streaming services are they are inserted based on a equation. Often they are put in the middle of a sentence or during the best part. They are the same ads over and over and over and over and over….

The part they are missing is that we are not watching the ads. We are muting them while not paying attention.

Wyrm (profile) says:

Pushing customers away

My Netflix subscription was cancelled because I was on the Basic tier and they gave me a choice between a horrible cheap option (w/ ads) or an expensive one (~50% increase) that does have some minor upgrades, but ones I don’t care about. If that’s how they’re playing it, I’m out.

I won’t pirate either. The net has tons of entertainment so I don’t need their service, not even a direct concurrent. I have a backlog of games that can last me for years. I have books. I have outdoors activities.

If they don’t want my money, fine by me.

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