Netflix To Remove Its Cheapest Ad-Free Plan

Netflix will begin phasing out its cheapest ad-free subscription tier, and it will start with Canada and the U.K.

In an earnings report, the video streaming giant announced its plans to remove the ad-free Basic plan as soon as the second quarter of 2024.

"The ads plan now accounts for 40% of all Netflix sign-ups in our ads markets and we’re looking to retire our Basic plan in some of our ads countries," the report stated.

Last year, Netflix announced that the ad-free Basic plan will no longer be available for new and rejoining subscribers, but allowed existing subscribers of the plan to keep their subscriptions as long as they did not cancel it. 

The plan, which costs $11.99 a month, is the most accessible and cost-effective option for Netflix users who wanted to stream the platform's shows and movies without ad interruption.

Soon, the lowest option for ad-free streaming will start at $15.49 a month. Users may also still opt for the ad-supported tier starting at $6.99 a month, or the Premium option starting at $22.99 a month. 

Netflix Finds Success In Ad-Supported Tier

Following its crackdown on password-sharing and the removal of the basic plan, the streaming platform experienced a high volume of users subscribing to its ad-supported tier. 

The low-cost plan reportedly soared to 23 million active users earlier this month, jumping from 15 million just last November. 

This aligns with Netflix's shift towards an ad-focused strategy, boosting revenue through its ad-supported tier among other ad-related initiatives.

The company is also reportedly considering adding ads to its games in order to monetize its in-app offerings.

Notably, Netflix might also charge more for its "advanced" games in development, support in-app purchases and place ads on games for its ad-supported tier.

Editing by Katherine 'Makkie' Maclang