Netflix Phases Out Cheapest Ad-Free Plan in Key Markets

Subscribers in Canada and the UK Must Switch Plans by Mid-July

NEWS  Smart TV  July 3, 2024  Reading time: 2 Minute(s)

Max (RS editor)

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Netflix is making significant changes to its subscription offerings, starting with the removal of its cheapest ad-free plan in select markets.

 

Reports from The Verge highlight a wave of notifications received by subscribers on Reddit in Canada and the UK. These subscribers, who are currently on the Basic plan without ads, have been informed via the Netflix app that they will lose access to the streaming service on July 13 unless they switch to a different plan. The streaming giant had previously announced in January its intentions to phase out the Basic ad-free plan in more markets during the second quarter of 2024, starting with Canada and the UK. Despite this timeline, the company will miss its original target date by a couple of weeks. This shift means subscribers in these regions must now choose between the cheaper Basic plan with ads or one of the more expensive ad-free options.

In May, Netflix revealed that its Basic plan with ads had attracted 40 million users, signaling a growing revenue stream for the company. Currently, this ad-supported plan is still available to US users at $11.99 per month. However, it is anticipated that American subscribers will soon face similar changes as those in Canada and the UK.

Adding another layer to its evolving business model, Netflix has been rumored to be exploring the possibility of a completely free, ad-supported version of its service. If launched, this option would target potential subscribers in parts of Europe and Asia, though it would not be available in the US.

  The adjustments in Netflix's subscription plans reflect its broader strategy to optimize revenue and expand its user base in different markets. As the company continues to adapt to the competitive streaming landscape, subscribers worldwide can expect more changes in the near future.

 IMAGES CREDITS: NETFLIX