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Netflix is shutting down its cheapest ad-free basic plan. In other words, subscribers wishing to enjoy Netflix content without advertisements will have to pay more monthly.
Netflix to terminate ad-free “Basic” subscription in select countries
Netflix has decided to shutter its Basic subscription. This wasn’t an entry-level plan, but it allowed subscribers to consume content without interruptions.
The streaming giant confirmed its intentions in its second-quarter earnings report. According to The Verge, Netflix will phase out its $11.99 Basic plan in the US and France.
Interestingly, Netflix had begun experimenting with the decision to sunset the Basic ad-free subscription a year ago. The company first terminated the plan in the UK and Canada. Netflix essentially forced its subscribers to either downgrade their experience by tolerating ads or pay more by opting for Standard or Premium plans.
Netflix thought they could be sneaky and slip this in
Getting rid of the basic ad free plan
No way pic.twitter.com/MsXWe3CDih
— JumboShark (@JumboShark19) July 19, 2024
Incidentally, Netflix’s ad-free Basic plan wasn’t available to new subscribers for over a year. The company ceased to offer the same in the US about a year ago. However, it allowed subscribers to enjoy the plan as long as they continued to pay for the subscription.
Moving forward, all Netflix subscribers in the US and France will have to either opt for the cheapest plan and tolerate ads or pay more to upgrade to Standard or Premium plans.
What are the cheapest subscriptions for Netflix with or without ads?
Netflix is essentially forcing users to pay for Standard or Premium plans. This means the company is trying to boost its revenue, primarily to placate shareholders who have long demanded the company make more from its subscribers.
Interestingly, the Basic ad-free plan may have been a hurdle for the company. It unlocked access to the majority of content on Netflix. This meant subscribers remained loyal to the plan instead of upgrading.
Netflix is phasing out its Basic plan, the cheapest ad-free option at $11.99 per month in the US, as announced on Thursday.
Current Basic users can switch to two ad-free options: the Standard plan at $15.49 or the Premium plan at $22.99. pic.twitter.com/ubCwZiYWoj
— My Mixtapez (@mymixtapez) July 19, 2024
The cheapest Netflix plan now costs $6.99 in the US. It contains unskippable ads at regular intervals.
Netflix priced the Basic ad-free plan at $11.99. The Standard plan costs $15.49, while the Premium subscription costs $22.99.
One more reason Netflix may have decided to end the ad-free Basic plan is because the company reportedly decided to measure its growth by regional revenue. In other words, Netflix is not pegging its success to the number of new subscribers it attracts every month.