Netflix removes its basic tier in the US and the UK
After removing the basic subscription plan in Canada, Netflix has removed the plan in the U.S. and the U.K. as well. The basic plan allowed users to consume Netflix on one screen in 720p quality. While users already subscribed to this plan will be able to continue, new subscribers won’t be purchase the basic plan.
The move, spotted by the UK-based website Code Busters, indicates that the company might axe the plan in all countries where it has rolled out an ad-supported standard plan. The plan was priced at $9.99 per month in the U.S. and £6.99 per month in the UK.
“The Basic plan is no longer available for new or rejoining members. If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account,” the support page on Netflix reads now.
Netflix first introduced an ad-supported plan in Canada and Mexico followed by a launch in countries like the U.S., the U.K., France, Germany, Italy, Australia, Japan, Korea, and Brazil. In April, Netflix upgraded the “Standard with ads” plan to support simultaneous streaming on two devices and full HD resolution.
The streaming company charges $6.99 per month in the U.S. and £4.99 per month in the U.K. for its ad-supported plan. If users would want to watch ad-free streaming, they will have to shell out $15.99 or £10.99 per month.
The move comes ahead of the company’s announcement of its Q2 2023 financials. In May, Netflix said that its ad-supported tier has more than 5 million users across the globe. An analysis by Anntenna suggests that Netflix’s ad-supported plans accounted for 17-20% of new signups for the March to June quarter.
Image Credits: Antenna.live (opens in a new window)
Analysts have estimated that the streaming giant will earn more than $1.9 billion in ad revenues next year.