Netflix forces legacy subscribers to switch plans
Netflix began alerting legacy U.K. and Canadian subscribers to its cheapest ad-free plan that they must switch their service tier or lose access. Current subscribers will either need to upgrade to the $15.49 Standard or $22.99 Premium plans, or downgrade to the $6.99 ad-supported tier by July 13 when the Basic plan is discontinued. This should come as no surprise, as Netflix began phasing out its Basic ad-free plan last year and previously announced it would continue to do so. The upcharge to the higher tiers supports two simultaneous users for the Standard plan and four users for Premium.
The Circana Take:
- Subscribers are caught in a tricky situation being forced to either cough up more money for ad-free tiers or convert to ad-supported viewing. This shows the company feels good about the financials of the ad-supported tier as this move will drive even more viewers into it.
Redbox bites the dust
The Redbox disc rental kiosk era has finally ended as its parent company filed for Chapter 7 bankruptcy and will fully liquidate its business. Rather than trying to raise funds by selling assets and keeping employees, the company decided to throw in the flag, eliminate those positions, and shut down all 24,000 Redbox kiosks. Five years ago, Redbox started decreasing its offering and stopped video game rentals to focus on movie rentals and its on-demand streaming service.
The Circana Take:
- First Netflix, and now Redbox. It is the end of an era for disc rental options forcing consumers to rely on streaming services for movie consumption. It presents a bigger challenge for those who do not have access to a stable internet connection and were able to conveniently rent while out shopping for groceries.
CNN plans launch of digital subscription product
CNN will launch a new subscription-only digital product on its website by the end of 2024, and debut two new free ad-supported digital offerings, one based on CNN’s original series and productions, and another based on its Spanish-language service. They will also be creating “news you can use” offerings in lifestyle coverage and incorporating AI. CNN has yet to develop a sustainable digital product while competitors like NBC News, CBS News, ABC News and Fox News have launched content offerings that are widely available. CNN has tried to enter the digital arena launching CNN+ two years ago but within a month it was closed by its parent corporation. The new attempt comes on the heels of its recent broadcast of the first presidential debate which drew more than fifty million viewers.
The Circana Take:
- As more people abandon traditional cable packages, it becomes imperative to maintain a successful digital footprint. This new subscription product could resuscitate CNN which has been struggling for ratings the past few years. By focusing on the presidential race and the drama in the Democratic party, CNN seems poised to attract new subscribers looking for a reputable source of reporting.