Goodbye, Netflix’s $11.99 Plan
Netflix is discontinuing its most affordable ad-free subscription plan, signaling pricing changes for existing subscribers.
The streaming giant has been planning to axe its basic plan for some time. In fact, last year, the company decided to stop offering its basic plan to new or returning members in the U.S., Canada, and the UK. Now, however, it is starting to remove it for existing subscribers, according to several Reddit posts.
The Time Has Come
The application is now warning the users of the cancellation and the end date, recommending they choose a new Netflix plan to continue. They either go for the $6.99 ad-supported plan, the $15.99 ad-free experience, or the $22.99 ad-free 4K premium plan. If the Reddit posts are any indication, the users are based in Canada or the UK.
Netflix’s pricing page in Canada and the U.K. now displays a “Basic plan has been discontinued” message along with a “You can change your plan at any time” message.
When The Verge prompted Netflix for comment, their answer was to direct the media outlet to a statement made back in January.
The statement pointed out the increase in subscribers choosing the ads plan, accounting for 40% of all Netflix sign-ups in their ads markets. The statement also reads, “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.”
True to Their Words
Last month, The New York Times interviewed some of the biggest names in the streaming industry. They discussed how user growth has slowed down, As a result, their respective companies are now looking to make up for the difference. They agreed on the same themes. More ads, higher prices, and fewer investments in high-cost, high-risk original programming. They seek to ditch the growth-at-all-cost model that they had adopted since the beginning. Instead, they are looking to shift to profitability now that they have established themselves.
Netflix’s decision to discontinue its Basic ad-free plan is proof of this shift. Netflix’s ad-supported tiers were introduced as a way to escape constant price hikes. However, Netflix is now forcing users to choose between higher-priced ad-free plans or ad-supported plans. This increases the company’s profitability. It won’t be long before the rest of the streaming services follow suit.
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