Netflix discontinues its cheapest ad-free plan in the US and FranceNetflix discontinues its cheapest ad-free plan in the US and France Netflix is discontinuing its $11.99 Basic plan in the US and France, after testing this strategy in the UK and Canada. The company’s cheapest ad-free plan right now is the Standard plan, which costs $15.49 per month. Basic subscription subscribers who would rather not pay more for Standard or Premium can opt for the ad-supported subscription, which costs $6.99 per month. Netflix prioritizes revenue over user experience Netflix has been implementing various strategies to increase revenue, such as clamping down on password sharing and exploring new ways to inconvenience users. The company’s focus on maximizing revenue has led to a decline in content quality and the development of useful features. Ad-supported tier gains popularity Over 45% of new Netflix subscribers are reportedly opting for the ad-supported tier, making it a financially viable strategy for the company. Netflix is also testing ads that appear on the pause screen and measuring its growth based on regional revenues instead of new subscribers.
Edgar Cervantes / Android Authority
In summary
- After testing this strategy in the UK and Canada, Netflix is discontinuing its $11.99 Basic plan in the US and France.
- Netflix’s cheapest ad-free plan right now is the Standard plan, which costs $15.49 per month.
- Basic subscription subscribers who would rather not pay more for Standard or Premium can opt for the ad-supported subscription, which costs $6.99 per month.
In an effort to maximize revenue and keep shareholders happy, Netflix has come up with innovative plans to charge customers more. Instead of focusing on content quality and developing useful features, the company has been busy exploring new ways to inconvenience users. After clamping down on password sharing, Netflix is now ending its cheapest ad-free subscription in the U.S. and France.
Netflix announced its second quarter results (via The edge) that it will phase out its $11.99 Basic subscription in the US and France. The change was first tested in the UK and Canada, with users encouraged to watch ads on a cheaper tier or pay more for the ad-free Standard and Premium plans.
While the Basic plan was first discontinued in the US a year ago, those who already had a subscription were allowed to keep it as long as they kept paying. Now that Netflix has done away with the plan entirely, existing subscribers must choose between the ad-supported $6.99 plan or the ad-free plans offered for $15.49 and $22.99. Alternatively, they can cancel their subscription and look into a better streaming service.
This change makes business sense, as over 45% of new subscribers are reportedly opting for the ad-supported tier. Giving users the choice between ads and more expensive subscriptions is a win-win strategy that could help Netflix grow its revenue in the months ahead.
In addition to eliminating its cheapest ad-free plan, Netflix is also testing ads that appear on the pause screen. The company will also measure its growth based on regional revenues instead of new subscribers.
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