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Netflix & bills: a study on subscription plans

Technology
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Netflix on TV and tablet with popcorn

As the year is coming to an end and the closing credits of 2022 are slowly starting to roll, streaming service Netflix can look back on what you might call an eventful succession of months. After losing almost 1.2 million subscribers and laying off 450 employees in the first six months of the year, the company managed to add over 2.4 million subscribers in their third quarter. However, that doesn’t seem to be the happy ending Netflix is aiming for this year.

In a bid to attract more customers, the streaming giant recently introduced a lower-priced subscription plan with ads. From now on, film fanatics in countries including Australia, the United States and Canada, can watch their favourite Netflix shows with commercial breaks at a reduced rate. But will that be enough to get the famous red “N” out of the red? Time2play asked 1,137 New Zealanders across the country if they would be interested in Netflix’s latest type of “bargain binging”.

Nz Netflix Bills Infographic

Our study finds less than half of New Zealanders (44%) are interested in a cheaper Netflix subscription with ads, which means the majority (56%) isn’t keen on the streaming service’s latest showpiece. Users who opt for the ad-supported subscription plan will get an average of 4 to 5 minutes of ads per hour, both before and during shows. Additionally, they won’t be able to download shows and movies for offline viewing and some titles won’t be available.

In Australia this new tier costs A$6.99 per month (NZ$7.50), A$4 less than the cheapest subscription model on offer. This price is well within the amount of NZ$10 per month that New Zealanders would be willing to spend on an ad-based Netflix subscription. However, in exchange they would accept no more than 5 minutes of ads per hour.

Account sharing

When it comes to account sharing, there are still some gains to be made. Currently 11% of New Zealanders share their Netflix account with someone outside their household. But it remains to be seen for how long. Earlier this year Netflix announced it will officially start charging users for password sharing. The streaming service began its trial in Chile, Costa Rica and Peru, charging account holders a $3-4 NZD fee for each additional user outside their household.

New Zealanders don’t have to worry just yet: the global rollout is scheduled for early 2023.

Methodology

In November 2022, we surveyed 1,137 New Zealanders throughout the entire country. 69% of our respondents were female, 31% were male.

For media inquiries, please contact [email protected]

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If you’d like to share this post or its assets with your friends or audience, you are welcome to do so. Please be sure you include attribution linking to this study.

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