Netflix Commences Phase Out of its Cheapest Ad-free Subscription

Netflix is carrying out its intention to gradually discontinue its most affordable ad-free subscription option for current users. As noted in multiple Reddit threads, Netflix is requesting that some users of its basic plan select a new one to continue using the service.

The message, “Your last day to watch Netflix is July 13th,” appeared on a Reddit user’s Netflix app. Choose a new plan to continue watching. Three options are available to subscribers who pay $11.99 per month for the basic plan: the $6.99 ad-supported tier, the $15.49 ad-free tier, or the $22.99 ad-free 4K premium plan.

Based on Reddit posts, it appears that most users who are seeing this prompt are from Canada or the UK. This is consistent with Netflix’s announcement in January that it will discontinue the basic tier for current subscribers in the second quarter of this year, beginning with those in Canada and the UK. The Basic plan has been removed, according to the streamer’s price page in both Canada and the UK, although “you can change your plan at any time.”

In April, Netflix announced that its operational income had increased by 54% to $2.6 billion in the first quarter, largely due to the growth of its ad revenue and membership fees. During the quarter, the company added 9.3 million paid members, bringing its total to around 270 million worldwide.

Since the streaming service’s 2022 debut of its ad-support plans, advertisers have contributed to campaigns created to appeal to the platform’s viewers. “Our two priorities in ads are to scale our member base and to build out our capabilities for advertisers,” Netflix said at the time in a shareholder letter. “We made progress on both fronts in Q1.”

For new or returning users in the US, Canada, and the UK, Netflix terminated its basic plan last year. Similar to numerous other streaming services, Netflix persistently encourages consumers to subscribe to their ad-supported plan, which has more than 40 million users as of May 2024.

For those who watch ad-free, Amazon Prime Video introduced a new $2.99/month fee that incorporates advertisements into its content. Important players also raised their pricing, such as YouTube TV Premium, Disney+, and Warner Bros. Discovery’s Max.