The streaming service, while announcing a much higher than expected number of new subscribers in its earnings report Tuesday, also revealed plans to “retire” its Basic ad-free subscription plan.
That means customers who are currently paying the $11.99 monthly rate will have to either opt in for advertising during programs (and pay a lower rate of $6.99) or jump to the next ad-free tier, which costs $15.49 per month.
Netflix last year stopped new subscriptions to its Basic plan, but allowed existing subscribers on that tier to keep it. Now it’s killing it off for good, starting with Canada and the U.K. For now, the Basic plan will continue in the U.S., but Netflix made it clear it plans to eventually remove it altogether.
“In Q4‘23, like the quarter before, our ads membership increased by nearly 70% quarter over quarter, supported by improvements in our offering (e.g., downloads) and the phasing out of our Basic plan for new and rejoining members in our ads markets,” the company wrote in a letter to shareholders. “The ads plan now accounts for 40% of all Netflix sign-ups in our ads markets and we’re looking to retire our Basic plan in some of our ads countries, starting with Canada and the UK in Q2 and taking it from there.”
Netflix, which also announced on Tuesday it would begin carrying WWE’s Raw starting in 2025, began sunsetting the Basic plan last July, removing it as an option for new customers as well as those looking to switch plans. At the time, the company said customers who were on the Basic plan would be able to maintain that tier’s rate until they canceled or changed their membership.
The Basic option came with limitations. Users, for instance, could only stream on a single device and could only download content to a single phone or tablet. It was the plan for singles. The Standard plan lets users stream in more than one place at a time, but that comes at a premium of more than 50%.
Ad-supported plans are more affordable, but will force viewers to watch roughly four minutes of ads per hour, with some slight restrictions on the content that can be viewed, due to licensing restrictions.
The elimination of the lowest-priced ad-free option follows Netflix’s crackdown on password sharing. The company is in the midst of a push to increase its revenues and subscriptions after they began to taper off at the end of the pandemic.
FAQs
Netflix is removing its cheapest ad-free plan for subscribers in the U.S. and France. The change was announced Thursday as part of the streaming giant's second-quarter earnings report.
Is Netflix removing the ad plan? ›
Netflix is pushing further into the world of live sports programming and experiences. Netflix will start phasing out its Basic plan, its cheapest advertising-free plan, which costs $11.99 per month in the United States, the company said on Thursday.
Why is Netflix discontinuing the Basic Plan? ›
Why is Netflix discontinuing its most affordable ad-free plan? Netflix is ending its most inexpensive ad-free plan to entice more customers to move to its less expensive ad-supported plan, which has seen a sharp increase in memberships.
What package is Netflix getting rid of? ›
During a call with investors last week, Netflix confirmed it will phase out its Basic tier in the U.S. and France. The Basic plan was previously the most affordable Netflix tier, available for less than $10 before a price hike in fall.
Can I share my Netflix account with family in a different home? ›
A Netflix account is meant to be shared by people who live together in one household. People who are not in your household will need to use their own account to watch Netflix. Learn more about sharing Netflix. Account owners can buy an extra member slot and invite people outside their household to use Netflix.
How much is Netflix a month without commercials? ›
Standard: $15.49 per month
The Standard plan is similar to the Standard with ads plan in that users can watch or download Netflix on two devices at a time, but have the added benefit of watching unlimited ad-free movies and shows.
How much is Netflix a month in 2024 per month? ›
Netflix Prices in 2024
Additional tiers include $15.49 for Standard service, which includes 2 screens, and $22.99 for Premium, which includes 4 screens as well as upgraded HDR/4K resolution.
Why is Netflix cancelling the Basic Plan? ›
During Netflix's earnings call in January, co-CEO Greg Peters highlighted the value of the ad-supported subscription versus the Basic plan, pointing out that the $7 option offers two streams, better video quality and downloads.
What is the cheapest I can get Netflix for? ›
Standard with Ads is Netflix's cheapest plan at $6.99 a month.
Is Netflix basic good enough? ›
Netflix plans in the US
The basic ad-supported plan does not include roughly 5 to 10% of Netflix's catalog, but all other subscribers have its full, unlimited collection of movies and TV shows. All plans allow cancellation at any time.
In a letter to shareholders today [PDF], Netflix confirmed publicly for the first time that it “will now start” to phase out the ad-free Basic plan in the US and France. This will make the cheapest commercial-free Netflix plan $15.49/month in the US.
How to get Netflix Premium for free? ›
Netflix does not offer free trials, but you have the freedom to change your plan or cancel online at any time if you decide Netflix isn't for you. There are no contracts, no cancellation fees, and no commitments. You can sign up and take advantage of all Netflix has to offer.
Is Netflix getting rid of ads free? ›
Netflix (NFLX) said Thursday that it will phase out its lowest-priced ad-free streaming plan in the US and France after removing that sign-up option in the UK and Canada last year.
Can I get Netflix without ads? ›
If you prefer to watch Netflix without ads, you can change to an ad-free plan. Ad-supported plans are limited to 15 total downloads per device per calendar month. The limit will reset on the first of each month. Using a mobile device to watch Netflix on a TV isn't available on an ad-supported plan.
Can I keep my Netflix basic plan? ›
Your plan determines how many extra member slots you can add. The Basic plan has been discontinued. You can change your plan at any time.
Is the Netflix $11.99 plan discontinued? ›
Netflix is ending basic $11.99 plan with no ads: Here's which subscription plans remain.
Is Netflix basic plan no longer available? ›
The streamer dropped its Basic commercial-free tier for new subscribers in the US and UK in July 2023 and followed up last October with a price increase for legacy customers with the subscription.
What is the new Netflix policy 2024? ›
In short, you can still use your account while traveling or while moving between addresses. Netflix will track whether you're streaming from your primary household (i.e. connected from the IP address linked with your account). If you're streaming elsewhere, Netflix may ask you to verify the device using your account.
Is there a way to pay less for Netflix? ›
Reduce Your Bill With Netflix Promo Codes and Gift Cards
You can get verified promo codes on Groupon, RetailMeNot and Slickdeals. Getting a discounted Netflix gift card is another way to reduce your bills. For example, you can buy discounted gift cards from Raise.com or MTCGame.
