Netflix to Cancel U.S. Subscriptions & 10 Other Major Streaming Changes

In a surprising move, Netflix has begun canceling subscriptions for some U.S. customers, sending concern through the streaming industry.¹ 

With 84.11 million paid subscribers across the United States and Canada as of Q2 2024, this decision marks a significant shift in the company’s strategy. 

Here are the latest developments and what they mean for Netflix users.

1. The Great Subscriber Purge

Netflix has officially started canceling subscriptions for certain U.S. subscribers, with thousands of accounts immediately removed.

While the exact number of affected users remains unclear, this move signals a major change in Netflix’s approach to managing its user base.

2. Ad-Supported Tier Gains Traction

Amidst the cancellations, Netflix reported a 34% increase in new sign-ups for its ad-supported tier during the second quarter.^(ref) This surge suggests that more users are opting for the cheaper, ad-inclusive option as Netflix reshapes its subscription model.

3. Farewell to the Basic Plan

Netflix announced the gradual phasing out of its Basic plan, the cheapest ad-free option priced at $11.99 per month in the U.S.

New sign-ups for this plan are no longer available, pushing users towards either the ad-supported tier or more expensive options.

4. Record-Breaking Subscriber Numbers

Despite the cancellations, Netflix’s global subscriber count has soared to an impressive 277.65 million.^(ref) This figure cements Netflix’s position as the leading streaming service, outpacing competitors like Disney+ and Max.

5. Password-Sharing Crackdown Pays Off

The recent surge in subscribers can be partially attributed to Netflix’s efforts to curb password sharing. This strategy has successfully converted many account borrowers into paying customers, contributing to the platform’s growth.

6. Expanding beyond Streaming

Looking ahead, Netflix is venturing into new territories with plans to open Netflix Houses in 2025. These entertainment venues aim to offer unique experiences and themed attractions, potentially revolutionizing how we engage with streaming content.

7. Advertising Platform Goes In-House

Netflix is developing its own advertising technology platform, set to launch later this year. This move allows the company to offer marketers more targeted advertising options and better measure ad performance.

8. Pause Ads Make Their Debut

The company is testing new advertising features, including showing ads when viewers pause their content. This innovative approach aims to increase ad inventory without disrupting the viewing experience.

9. Shifting Focus to Revenue Reporting

Starting in 2025, Netflix will change how it reports growth, focusing on revenue by region instead of subscriber numbers. This shift reflects the company’s evolving business model and priorities.

10. Investing in Gaming & Interactive Content

As Netflix explores new avenues for growth, the company is making significant investments in gaming and interactive content. Here are some key developments:

• Acquiring gaming studios to bolster its in-house game development capabilities.
• Launching mobile games as part of its subscription offering, with plans to expand to other platforms.
• Experimenting with interactive content, such as “Black Mirror: Bandersnatch” and “You vs. Wild,” to engage viewers in new ways.

As Netflix continues to evolve, these changes reflect the company’s adaptability in a competitive streaming landscape. While some subscribers may find themselves affected by the recent cancellations, the platform’s growth and innovative approaches suggest a dynamic future for the streaming giant.

Source:
1. WRAL News