On Oct. 6, Netflix announced they will be implementing an additional option to their streaming services. This new offer will give Netflix viewers the choice to choose a cheaper subscription option for $6.99 or ₩5,500.

This cheaper subscription plan comes amidst a drop in Netflix subscriptions. Since the beginning of 2022, Netflix has been on a downward trajectory. As of May 17, share prices have dropped 62.5 percent year to date.

Netflix’s original success in the early 2000s came largely due to the absence of competition. In 2007, Netflix was the first international streaming service with an extensive catalog, including TV shows, animations, and movies, becoming a monopoly over the streaming business. However, with new streaming options like HBO Max and Disney Plus seeing new growth in their subscription base, Netflix has had to offer new deals to remain competitive. 

“It was a good way to watch new content until I exhausted all the content on Netflix, at least in my region, so recently, I am not as satisfied with Netflix as before,” Andrew Kim (10), a Netflix fan, said. 

In their attempts to maximize subscription rates, Netflix created a new subscription plan called “Basic with Ads,” which will now be offered in 12 countries, including the US, on Nov. 3 and South Korea on Nov. 4. This option will play a 15-30 second ad multiple times throughout old TV shows and movies, and a single ad at the beginning for newly released content. 

This new plan will impose other restrictions. Viewers who subscribe to this plan will only be able to access 90 to 95 percent of movies offered on Netflix and will not be able to download content.

“We believe that with this launch, we will be able to provide a plan and a price for every Netflix fan,”  Greg Peters, Netflix’s Chief Operating Officer, said.

“I personally think watching those ads will ruin my overall enjoyment, especially during the show. However, I think it will be effective because those who want to watch Netflix can watch it at a much cheaper price,” Anika Kurebayashi (11), an avid Netflix watcher, said.