Netflix is making significant changes to its subscription options, phasing out the least-expensive ad-free tier.
According to reports from social media users, existing subscribers in the UK and Canada are now being asked to switch plans in order to keep their subscriptions. The move follows Netflix's decision to discontinue the plan for new and returning members in 2023, and now extends to current subscribers.
Netflix Phases Out Basic Ad-Free Plan In UK And Canada
Subscribers have begun receiving notifications about the change. According to a post on Reddit, one user received a message stating that the last day to use their current plan is July 13, and advising them to choose a new plan to continue watching Netflix. The message reflects Netflix's broader strategy of phasing out its $10/month basic plan and redirecting users to other available options:
- $7 Ad-Based Plan: The most affordable option, albeit with advertisements.
- $15.50 Ad-Free Plan: A mid-tier ad-free option.
- $23 Ad-Free 4K Plan: The premium option for those seeking ad-free content in 4K quality.
Can't finish Netflix subscription by u/BritestBowlingBall in mildlyinfuriating
Strategic Shift Towards Ad-Based Plans
This change is in line with Netflix's January 2024 announcement to remove the basic tier for existing subscribers in the second quarter, starting with the UK and Canada. The company is increasingly steering customers towards its ad-based plan, which is the cheapest ad-supported option among major streaming services at $7/month. For comparison, similar plans from Max, Paramount+, and Disney Plus cost $8/month.
While Netflix eliminated the basic plan for new and returning members in the US in 2023, it has not yet specified when existing US subscribers will be affected. However, the recent actions in the UK and Canada suggest that similar changes in the US are likely imminent.Netflix's decision to phase out the basic ad-free plan reflects a broader industry trend towards ad-supported streaming options. This shift is aimed at balancing affordability for subscribers with revenue generation through advertisements. For users who prefer an ad-free experience, the cost will be higher, pushing them towards the $15.50 or $23 plans.