Netflix has announced the discontinuation of its Basic plan in the United States and France. This plan, previously the most affordable ad-free option, will no longer be available, pushing users toward the more expensive Standard plan or a cheaper ad-supported tier.
Plan Changes and Pricing
The announcement was made in Netflix’s Q2 financial report, following earlier tests in the United Kingdom and Canada. Users in multiple countries have already reported the change, which is now official.
| Plan Type | Cost (US) | Features |
|---|---|---|
| Basic (Discontinued) | $11.99 | Ad-free, limited features |
| Ad-supported | $6.99 | Ads included, limited features |
| Standard | $15.49 | Ad-free, more features |
| Premium | $22.99 | Ad-free, 4K streaming, more devices |
Impact on Current Users
Existing customers on the Basic plan will be allowed to keep it for a limited time but will eventually need to switch to a new plan. The cheaper option now is the ad-supported tier at $6.99.
Additional Changes
Netflix’s quarterly report also revealed two significant updates:
- Pause Screen Ads: Testing ads that appear on the Pause screen for ad-supported tiers.
- Revenue Measurement: Transitioning from measuring success by new subscribers to growth in regional revenue.
Conclusion
The removal of the Basic plan marks a shift in Netflix’s pricing strategy, aiming to steer users toward higher-tier plans or ad-supported options. As the company implements these changes, it will be interesting to observe the impact on its subscriber base and revenue growth.
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