Netflix Moves to Remove Cheapest Ad-Free Plan From Platform
Netflix plans to remove its lowest-cost ad-free viewing plan this month.
Fox – KTVU
Netflix is eliminating its lowest-priced ad-free plan in the US, which could push more viewers to its cheaper ad-supported plan.
The streaming giant, headquartered in Los Gatos, California, said Thursday in a statement. Message to shareholders The company announced that it will phase out its ad-free Basic plan — which cost $11.99 per month — in the US and France. The company had previously phased out the Basic plan in the UK and Canada.
The Basic plan is not offered as an option to subscribers in the United States. Plan and Pricing Page For customers in the United States. The company stopped offering the Basic plan to new subscribers in July 2023, but allowed Basic plan customers to stay on the subscription as long as they did not cancel or change plans.
Other Netflix plans include a $6.99 monthly option with ads, a $15.49 monthly standard plan with HD video quality (no ads), and a $22.99 premium plan with Ultra HD quality (no ads).
Netflix, which began offering a “standard with ads” tier in November 2022, said the plan’s “attractiveness” led to a 34% increase in ad-supported subscriptions compared to the previous quarter. The company reported a record 277.65 million subscribers across all tiers in the second quarter, up 16.5% year over year.
Netflix subscribers in the U.S. and France who are currently on the basic plan will be forced to choose a new plan, the company said in a statement to USA TODAY. Affected members will receive an email starting today, the company said.
Even without the basic, ad-free offering, Netflix is “a very strong proposition for our members,” when you consider the $6.99-a-month ad-supported option, co-CEO Greg Peters said during a video conference about Company performance in the second quarter Thursday.
“Basically, we give them a better experience: two streams versus one. We have higher resolution. We have downloads. And of course, all at a lower price,” he said. “And for members who don’t want that ad experience, they can of course choose our standard or premium plans that are ad-free.”
The company reported double-digit revenue growth for the third consecutive quarter, with revenue of $9.56 billion in the second quarter of 2024, up 16.8% compared to the same quarter in 2023.
Netflix added more than 8 million subscribers in the second quarter, helped by the return of shows like “Bridgerton,” “Baby Reindeer,” the live event “Tom Brady’s BBQ,” and a crackdown on password sharing.
What Netflix plans are available?
- Standard with ads ($6.99/month): Watch in Full HD on 2 supported devices simultaneously and download to 2 supported devices simultaneously
- Standard plan ($15.49/month): Watch video in Full HD and download to 2 supported devices at once (option to add an additional member who doesn’t live with you for $7.99/month).
- Premium Plan ($22.99/month): Watch in Ultra HD (4K) on 4 supported devices simultaneously and download on 6 supported devices simultaneously; option to add up to 2 additional members who don’t live with you for $7.99/month).
Netflix adds 8 million new subscribers
The company said total subscribers rose to more than 277.6 million, up 16.5%. Netflix forecast a decline in subscribers in the current quarter (July-September) compared with the same period last year, when the streaming company added more than 8.7 million subscribers.
In April, the company announced that it plans to stop reporting member numbers in 2025.
In after-hours trading, Netflix shares initially fell 2%.
Netflix will begin releasing monthly video game releases, including a game based on “Emily in Paris” later this month. It will also release a multiplayer game based on “Squid Game” later this year.
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