Are streaming services losing their appeal?

Can you count how many streaming services you are subscribed to? Right now we see more than 200 streaming services available around the world, according to Cloudwards statistics. With all these streaming services, it's hard to keep track of what content is on which platform, and the cost of having multiple subscriptions can add up quickly. 

Starting in November Netflix will offer a cheaper subscription plan that will include ads and will be joining other streaming services such as Hulu and Peacock that already offer plans with ads.

Since the launch of Netflix, the appeal of these streaming services was that you could watch almost any movie or show on your own time with just a few clicks. Streaming also meant no commercials, so subscribers could watch their favorite shows, uninterrupted. The streaming services that offer basic plans with ads play just about as often as commercials would, and now Netflix is one of them.

This new plan may be Netflix’s attempt to gain back subscribers. The Washington Post explains why Netflix began to lose subscribers in the US and Europe, “because of competition, recession, inflation, and general fears about the economy.” This led Netflix to change their tactic, as explained in a Forbes article, to introduce a “cheaper ad-supported service in an attempt to regain momentum.” The reason Netflix wants to have ads on their platform is to gain both revenue and to appeal to consumers with lower prices.

Shelby Silva, a junior at Sonoma State University said her favorite streaming service would be “Hulu because it has a good variety of shows but I don’t like the ads.” Silvia feels that ads ruin the experience of watching shows and movies, which many people would agree to.

With ads and options to bundle streaming services to save money, it seems like we are moving back in time to cable tv. Though many people have stopped paying for cable altogether, since streaming offers hundreds of options, people are spending just as much, or more for multiple streaming platforms.

Customers are surprised to hear about this happening with Netflix. Danielle Reyes, a senior at SSU questioned, “Why are we paying and still getting ads?” Reyes also explained her frustrations with streaming platforms and said that it is an inconvenience to paying customers like herself. “Ads will make me want to choose other streaming services over Netflix,” she said.

This is where customers get frustrated because they are already paying for the services themselves. The platforms just want to make more profit off of their customers because they know some would rather pay extra for an ad-free experience. 

As we see Netflix improvising with new features we see other streaming services competing. HBO ax, Hulu, Apple TV, and Disney+ seem to offer more shows and movies that appeal to the public. Some also offer a student discount, specifically, HBO Max offers a 20% discount, Paramount Plus offers a 25% discount and Hulu is only $1.99 a month for students. Netflix does not have a student discount available but this new ad plan is a cheaper option for those who want to watch their content. 

Overall Netflix is getting to the point where it feels like we are slowly going back to cable tv. Customers should not have to pay extra for no ads.