Netflix has long eclipsed its humble DVD-by-mail roots to transform into a global streaming juggernaut, but it is not about to stop tweaking its business model now. Recently, that’s involved moves likecracking down on password sharing, and the introduction of its “extra member” add-on for those who wish to continue. Now the latest change is the elimination of the “basic” subscription plan in the US and UK, following in the footsteps of asimilar adjustment made in Canadalast month.
Netflix supports various subscription levels, evenadding an ad-subsidized discount tierlast year. As the company seeks to streamline its offerings, the basic ad-free plan has become the first casualty, hinting at a growing shift towards ad-supported models.
Netflix took a leap of faith in November 2022 by introducing an ad-supported tier, a step that initially attracted its share of critics. Despite the early hesitation, this new direction notablyelevated the company’s revenue stream. As we entered the first quarter of 2023, the ad-supported basic plan, despite costing less, overtook the standard plan in generating more revenue per user in the US.
If you’re signing up for Netflix for the first time or choosing a new plan in the US or UK, you’ll be able to choose from three subscription tiers. The first option is the ad-supported plan that costs $7/£5 per month. The standard plan goes for $15.50/£11, and the 4K premium plan will run you $20/£16 a month.
The recent demise of the ad-free basic plan in markets like Canada, the US, and the UK might be Netflix adjusting its sails to adapt to the changing streaming winds globally. While Netflix hasn’t officially tipped its hand about similar shifts in other regions, the moves so far hint at a potential worldwide strategy. Regardless of these changes, Netflix’s spokesperson Kumiko Hidaka stresses that entry-level pricing — $7 in the US and £5 in the UK — continues to offer good value in the competitive world of streaming.
