In a recent earnings report, Netflix revealed it is scrapping its most affordable ad-free subscription plan in both the U.S. and France. This move affects the basic plan, which was priced at $11.99 per month. Earlier this year, Netflix had already eliminated this plan in Canada and the UK. While new subscriptions to the basic plan were stopped in July 2023, existing customers were permitted to keep it until now.
Updated Subscription Options
Current subscribers of the basic plan will need to select from other options: the ad-free Standard plan for $15.49 per month, the ad-supported plan at $6.99 per month, or the Premium plan for $22.99 per month. Launched in November 2022, the ad-supported plan provides a lower-cost alternative but features advertisements. Unlike the basic plan, it supports multiple simultaneous streams.
Netflix’s strategy to phase out the basic plan has been gradual. Starting in July 2023, the company ceased offering the ad-free Basic tier to new users in the US and UK. Existing subscribers in these regions experienced a fee increase to $12 per month starting in October. Netflix’s formal plan to eliminate the basic plan was outlined earlier this year and has now progressed to include the US and France.
New Plan Choices
Following these changes, US subscribers now have three options: the Basic With Ads plan at $7 per month, the ad-free Standard plan at $15.50 per month, and the Premium plan at $23 per month. For an additional $8 per month, subscribers can share their account with someone outside their household. While the ad-supported plan is popular and more affordable compared to rivals like Disney Plus and Hulu, it has limited content access, requiring an upgrade for certain shows and blockbuster films.
During Netflix’s earnings call in January, co-CEO Greg Peters highlighted the benefits of the ad-supported plan, noting it offers better video quality, the ability to download content, and two simultaneous streams for a lower price compared to the basic plan.
Expanding Content and New Ventures
Netflix continues to diversify its content offerings, including a growing selection of video games and live sports. After experimenting with live streaming for a comedy special and a golf event, Netflix is expanding into live sports. Recently, the platform broadcast a tennis match between Rafael Nadal and Carlos Alcaraz and secured a deal with World Wrestling Entertainment (WWE).
Starting January 2025, subscribers in the US, UK, Canada, and Latin America will be able to watch live WWE Monday Night Raw matches on Netflix. Additional regions will be included in the future, and Netflix will also provide international viewers access to WWE events such as Smackdown and WrestleMania.
Success of the Ad-Supported Plan
Greg Peters spoke positively about the ad-supported plan’s performance, especially following the basic plan’s phase-out in Canada and the UK. “We’re offering a better value with two streams, higher definition, and downloads for $6.99 in the US. It’s a significant improvement over the basic plan, even with ads,” Peters said. “For those who prefer an ad-free experience, our Standard and Premium plans remain available.”
Subscriber Growth
Netflix’s earnings report also highlighted a milestone of 277.65 million global subscribers. This increase follows the company’s recent efforts to curb password sharing, reflecting the growing appeal of its varied subscription plans.
