Netflix is no longer offering its cheapest ad-free streaming plan in the US and UK, aiming to push value-conscious consumers to sign up for its ad-supported package.
The basic plan, which provided a one-time stream for $9.99/month in the US and £6.99/month in the UK, is no longer available «for new or returning members» in the respective countries . According to Netflix, existing basic members can «stay on this plan until you change plans or cancel your account.»
The removal of Netflix’s basic plan is designed to push customers into the ad-supported standard, which the company first launched last November. In May, Netflix said it had signed up more than 5 million members for its ad-supported plans.with 25% of new subscribers taking the package.
“Our starting prices of $6.99 in the US and £4.99 in the UK [for Standard With Ads] they are lower than the competition and provide great value to consumers given the breadth and quality of our catalog,” a Netflix spokesperson said. Variety.
The company dropped the basic plan in Canada last month. The move to end the basic plan in the US and UK comes as Netflix is set to report second quarter 2023 earnings on Wednesday after the market closes. Analysts expect Netflix to report a sizeable increase from its new payshare program, the company’s attempt to monetize illicit password sharing that launched widely during the second quarter in the US and several other countries.
Reporting Q1 2023 earnings, Netflix said that in the US, the ad-supported plan was already producing a higher overall average revenue per customer (aka ARPU) than the standard $15.49/month plan. . That means the company was generating at least $8.50/mo in ad revenue per subscriber on the Standard plan with ads.
Netflix’s standard with ads offers viewing on up to two devices simultaneously (as with the standard ad-free plan), but does not offer offline viewing or the option to add an additional member. The plan serves an average of 4 minutes of non-skippable ads per hour.
The company says that «the vast majority of TV shows and movies» are available on ad-supported plans, but that «a small number are not due to licensing restrictions.» Netflix ad-supported plans are currently available in the US, UK, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, and Spain.