Netflix, the popular streaming service, has just discontinued its $9.99 (£6.99) per month Basic ad-free plan in the US and UK.
The Basic plan had been a popular choice among Netflix users, who appreciated the affordable price point and the absence of advertisements during their streaming sessions. However, Netflix seems to be reevaluating its pricing strategy and exploring new options to offer its customers.
The removal of the Basic plan means users are now left to choose from the $6.99 (£4.99) per month Standard with ads plan, the $15.49 (£10.99) per month Standard plan, and the $19.99 (£15.99) per month Premium plan.
Netflix executives have previously commented that its ad tier already draws higher revenue per subscriber than its Standard tier, showing the company’s intent to increase profits by making users pay for a more expensive plan or watch advertisements to keep their costs down. Additionally, by pushing more users to its ads plan, the company can rely less on growing its subscriptions to generate profit since advertisers can provide additional revenue. This change not only marks a significant adjustment in Netflix’s pricing structure but also in its business model.
The removal of the Basic plan comes as no surprise as the streaming service giant recently removed the plan in Canada and essentially hid it from new users signing up for the platform in the US and UK.
It’s worth mentioning that while the Basic plan is no longer available for new or rejoining members, if you are already on the plan, you will be able to remain on it until you change plans or cancel your account, according to Netflix.