What Is Going On at Plex? 20% Staff Layed Off? What is Happening and Should You Be Worried?
When it comes to enjoying your personal multimedia collection that you’ve built over decades, while still benefiting from the slick GUI available from third-party streaming services, there are very few better options out there than Plex media server. Plex has been around since 2008 and in that time has evolved from being a relatively small fish in the sea of multimedia server applications to becoming one of the biggest names for personal multimedia collections. Which is why it came as such a huge shock to many users when it became public knowledge that Plex had recently laid off 20% of its workforce in efforts to maintain profitability. Plex, unlike a number of open-source alternatives, is built on a hybrid free and paid subscription service model, with a significant percentage of the more desirable capabilities of the software behind a paid Plex pass. Today we want to discuss everything we know about the unfortunate ex-employees of Plex, how the Plex organization is adapting its business model in efforts to remain profitable, and what this might mean for new and existing users of Plex.
What Has Happened at Plex HQ and Why?
Although there has been no official statement from Plex on their own platforms, there have been numerous indications of recent events surrounding the layoffs at Plex and changes being required internally, published on several news outlets and social media platforms. Some of the earliest indications came from numerous ex-employee postings on LinkedIn volunteering that they were unfortunately involved in the large-scale layoffs at Plex. This was further corroborated by the popular website, The Verge, when they obtained Slack messages that detailed more about the current situation and responses from the CEO of Plex, Keith Valory.
“This is by far the hardest decision we’ve had to make at Plex, These are all wonderful people, great colleagues, and good friends. But we believe it is the right thing for the long-term health and stability of Plex. While we adjusted our business plan last year after the shift in equity markets to get us back on a path to profitability without having to cut personnel expenses, the downturn in the ad market in Q2 put significantly more pressure on our business and ultimately it became clear that we would need to take additional measures in order to maintain a confident path to profitability within the next 18 months,” CEO Keith Valory
For those who do not wish to visit the original article and find out more, you can find the TL;DR below:
- Information primarily stems from a Slack message obtained by ‘The Verge’
- Original investments in 2019 by PLEX towards ad-funded free streaming services on their platform did not produce the predicted ROI, due to a competitive and oversaturated marketplace
- 37 People Laid Off, totally 20% Workforce Affected (All Departments)
- Looking to turn things around and back into positive cash flow in 18 months
- Restructuring Plex Long term under four main product areas
- Changes in the product roadmap
- Reduced spending on marketing
- Several members of staff have shared information on the layoffs
- Several Plex backend devs on Reddit sharing their input
- Indications that another, smaller, round of layoffs took place at the start of 2023
With an incredibly competitive marketplace right now, with third-party streaming services fighting for your monthly subscription, and other supportive streaming services really squeezing the profit margins tighter, it comes as little surprise to many users that Plex trying to enter this crowded marketplace was always going to be challenging at best, and futile at worst. Furthermore, Plex is no longer a small indie outfit, and in order to support its existing large user base, wide variety of supported third-party hardware platforms, and continue to grow and remain sustainable, it seems like the company really does need to make some serious internal changes.
However, as bad as the loss of 37 staff members’ jobs is (and let’s be clear about this, it is really disappointing!), many existing Plex media server users are going to have to think about how this may impact their long-term enjoyment of Plex media server on the devices they use. So let’s take a moment, put on our worst-case scenario hats, and think about some hard choices that Plex may need to make to remain profitable and commit to that plan to be cash positive in 18 months.
What Is the Worst Case Scenario for Plex Users?
In the face of these drastic changes within Plex, it’s essential to consider the possible outcomes that could impact its user base. Let’s delve into the worst-case scenarios for Plex users, examining how these potential changes could significantly alter the Plex experience for both existing and potential new users.
- The End of Plex Pass Lifetime Memberships, Old and New
- Reduced Development of Less Popular Plex Client and Plex Media Server Devices
- Slow Down and/or Reductions in Support of New Compressions, Codecs, and Formats in Plex
- A Restructuring of the Plex Free / Subscription Tiers, favouring Ad Supported Tiers
- More Paid Client Tools, Beyond iOS and Android
So, let’s break down into each:
- The End of Plex Pass Lifetime Memberships, Old and New This would significantly impact existing users who have invested in a lifetime Plex Pass, relying on its benefits for as long as they use Plex. If Plex were to end this membership, they may resort to a monthly or annual subscription model which would increase the ongoing cost for users. The loss of the lifetime membership could also disincentivize new users who might have considered Plex as a long-term investment. For those that invested in the ‘Lifetime’ Plex Pass back when it was first introduced in 2013/2014 or so, that has still been incredible value IF the lifetime membership was rescinded (more likely, it will cease to be the same, as a new tier would be introduced in its place, slowly returning the lifetime pass technically). For slightly newer Lifetime pass users, it would be very disappointing.
- Reduced Development of Less Popular Plex Client and Plex Media Server Devices Users who are using Plex on less popular or older devices could be affected negatively. Plex might cease updates and improvements on these platforms, resulting in stagnation or even degradation of user experience over time. Users may be forced to switch to different, possibly more expensive or less preferred devices to continue using Plex with all its features. This could target any OS that is above a certain age range (as PLEX might want to prioritize their workforce towards newer OS’ and their updates. Alternatively, it could be the reverse and result in a similar situation as found with Drobo a few years ago and not staying on track with the newest OS’ updates, resulting in new hardware (that has the latest software revisions out the box) not working right/at-all.
- Slow Down and/or Reductions in Support of New Compressions, Codecs, and Formats in Plex One of Plex’s strengths is its support for a wide range of file formats and codecs. If Plex were to slow down or reduce the support for new technologies, users would be limited in the type of media files they could stream. This could frustrate users who have diverse media libraries or who wish to make use of the latest file formats. With the increased development and availability of 4K, as well as new and more efficient formats needed to handle 8K (from Cinema screen to your iPhone!), staying ontop of the latest compression formats and file types is going to be growing in importance year on year.
- A Restructuring of the Plex Free / Subscription Tiers, favouring Ad Supported Tiers If Plex were to restructure its free and subscription tiers to favour ad-supported content, this could affect the viewing experience for all users. Ads can be disruptive and may make the platform less enjoyable for users who are used to an ad-free experience. Paid users may also feel frustrated if the number of ads increases or if more content becomes ad-supported. Currently, Plex has three tiers. Monthly Subscription of $4.99 , Annual of $39.99 and a lifetime pass at $119. These do see promotions/discounts at sales events and different regions of the world have different prices, but these are largely the prices. Now, in order to become more profitable, Plex might adapt this towards a tiered system which has certain features locked to specific tiers. Or, they might introduce an Ad-supported tier as opposed to the lowerest tier (perhaps even replacing the free tier to maintain and subsidize it’s use).
- More Paid Client Tools, Beyond iOS and Android Currently, Plex charges for client tools on iOS and Android. If they were to extend this to other platforms, users could end up paying more than they currently do. For example, users who use Plex on their smart TVs or gaming consoles could be affected. This could make Plex less attractive compared to free or cheaper alternatives. This is probably the least likely ‘worst case scenario’ as it would need these platforms to have a robust payment system in place that is both reliable, convenient and not off-putting, but it’s something that some other platforms (Emby for example) have in a bigger way already.
Ultimately, ALL of the above are hypothesised and not confirmed in any way, but Plex needs to make changes in order to remain stable and profitable, so I would not rule them out either! Ultimately, changes to the subscription models and what are included are almost certainly going to be the BIG change that happens (and, in my opinion) are needed. Heck, if a GIANT like Netflix can change their subscription tiers in this current streaming vs profit climate to introduce ad-supported lower-priced tiers and/or alter the scope of what a subscription includes – ANYONE CAN!
Should You Leave Plex? What Are the Alternatives?
As Plex grapples with internal challenges, users may naturally start to contemplate alternatives. Two of the most notable competitors are Emby and Jellyfin, each offering their own unique advantages that could potentially serve as suitable replacements for Plex.
Emby, similar to Plex, offers a polished, user-friendly interface and supports a wide range of devices. Its strong live TV support is a particular standout, and it’s also known for its robust parental control features, making it an excellent choice for families. Emby offers a free tier, but to unlock all its features, including mobile and cloud sync, cinema mode, and offline media, users need to subscribe to Emby Premiere. If you’re accustomed to the premium features offered by Plex Pass, Emby might be a good choice. However, the transition might not significantly alter your spending, as Emby also operates on a subscription model.
On the other hand, Jellyfin is a completely free and open-source media server software, which might appeal to those who are more budget-conscious or prefer a more hands-on, customizable approach. Born as a fork of Emby, Jellyfin is entirely community-driven, meaning that it doesn’t feature any premium tier or include any form of advertisement. However, being community-driven, it doesn’t provide any official customer support, which might be an issue for less tech-savvy users. The interface is not as polished as Plex or Emby, but it’s continually improving. For those who value total control over their media server and don’t mind getting their hands a little dirty, Jellyfin could be an excellent alternative to Plex.
Ultimately, whether Plex users should switch over to Emby or Jellyfin largely depends on their individual needs and preferences. Both alternatives have their merits and downsides, and it’s important for users to carefully consider these before making the switch.
You can find out more by visiting our Plex vs Emby vs Jellyfin article below:
(Click the banner below to read the article):
Alternatively, you can watch my comparisons of Plex vs Emby and Plex vs Jellyfin, in the videos below:
| Plex vs Jellyfin YouTube Video | Plex vs Emby YouTube Video |
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