Netflix will no longer offer new U.S. subscribers its cheapest ad-free plan.
Netflix’s website notes that its $9.99-per-month ad-free plan is “no longer available for new or rejoining members,” but current customers can remain on the plan so long as they don’t cancel or change plans. The change means the cheapest ad-free tier for new members is now $15.49 per month.
After phasing out the basic ads-free plan for new and rejoining members in Canada, "we’re now doing the same in the US and the UK," the report reads. "We believe our entry prices in these countries – $6.99 in the US, £4.99 in the UK and $5.99 in Canada – provide great value to consumers given the breadth and quality of our catalog."
What was included in Netflix's $9.99 basic tier?
The $9.99 basic tier allowed customers to watch content without ads on one device at a time.
Its demise comes shortly after Netflix launched its $6.99 ad-supported tier in November, which features an average of up to four to five minutes of ads per hour. The new pricing plan drew in nearly five million global monthly active users in just six months, with more than a quarter of new signups choosing the ad-supporter plan in countries where it's available, according to a May press release.
While Chief Financial Officer Spence Neumann said the ad-supported plan continues to bring in a higher average revenue per membership than Netflix's standard plan, a company statement said its current ad revenue "isn't material" because the membership base is still small.
"Building an ads business from scratch isn’t easy and we have lots of hard work ahead, but we’re confident that over time we can develop advertising into a multi-billion dollar incremental revenue stream," the statement reads.
A standard plan with ads for $6.99 per month that includes “all but a few movies and TV shows” due to licensing restrictions. Subscribers cannot download shows or movies.
A standard plan without ads for $15.49 per month that lets users watch and download on two devices at a time in full HD. Customers can add one extra member who doesn't live in their household.
A premium plan without ads for $19.99 per month that lets users watch on four supported devices and download on six devices at a time in Ultra HD. Customers can add up to two extra members who don’t live in their household.
Netflix earnings
Also Wednesday, Netflix revealed that it added 5.9 million subscribers in the second quarter. Despite the boost, shares slipped during after-hours trading after the company revealed it missed revenue expectations.
CFO Neumann said most of the company's revenue growth this year comes from new paid memberships, largely driven by the company's crackdown on password sharing.
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.
Basic plan subscribers can switch to the ad-free Standard plan, which is $15.49 per month, or downgrade to the ad-supported plan that is $6.99 per month, which was launched in November 2022. There is also a premium plan for $22.99 per month.
From July 2023, there will be no more new signups for the $11.99 monthly basic ad-free plan in the US. Until they change or cancel their subscription, current subscribers may remain with the plan, reports MSN.
Sign in to your Netflix account. Select Change Plan. (If you don't see Change Plan, please contact us.) Note:If your account is on hold, no plan changes can be made until the hold is resolved.
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.
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.
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.
Netflix's website notes that its $9.99-per-month ad-free plan is “no longer available for new or rejoining members,” but current customers can remain on the plan so long as they don't cancel or change plans. The change means the cheapest ad-free tier for new members is now $15.49 per month.
Major changes are being made to Netflix, including the cancellation of some U.S. memberships, an increase in tier sign-ups that are ad-supported, the phase-out of the Basic plan, and an expansion into gaming and themed attractions. These changes are intended to improve user engagement and growth.
As we continue to add more TV shows and movies and introduce new product features, our plans and prices may change. We also may adjust plans and pricing to respond to local market changes, such as changes to local taxes or inflation.
Other Netflix plans include a $6.99 monthly option with ads, a $15.49 monthly standard HD video quality plan (no ads) and a $22.99 premium Ultra HD plan (no ads).
Basic plan subscribers will now pay $11.99 per month, an increase of $2 per month, and Premium plan subscribers will now pay $22.99 per month, an increase of $3 per month. Netflix's entry-level, ad-supported plan (its least expensive) remains at $6.99 and its Standard tier plan remains at $15.49.
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.
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.
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.
The announcement about sunsetting this subscription plan is not new. 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.
Streaming giant Netflix will effective November 1, 2023 discontinue its free plan in Kenya. Netflix informed its free plan users of the announcement via emails on Tuesday. "On November 1, 2023, the Free Plan will no longer be available and your membership will end. If you want to cancel; no action is required.
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