Netflix’s cheapest ad-free tier is no longer available to new subscribers.
Following the withdrawal of its cheapest ad-free plan in Canada last month, Netflix has chosen to terminate it in the United States and the United Kingdom. The basic plan at $9.99 (£6.99) per month is no longer accessible to new or returning users. Instead, Netflix now provides an ad-supported tier for $6.99 (£4.99) per month, a basic plan for $15.49 (£10.99), and a premium plan for $19.99 (£15.99). Existing subscribers on the basic plan can keep it as long as no modifications are made.
According to co-CEO Greg Peters, the removal of the basic plan in these nations attempts to “optimize” Netflix’s plan structure, as he believes their current entry pricing offer outstanding value given the large catalog of content available. The change comes as Netflix continues to experiment with pricing schemes, with the goal of giving consumers with access at a variety of price points.
The basic plan, which only enabled HD streaming on one device at a time, was previously concealed from new customers in the United States and the United Kingdom, requiring them to click on a “see all plans” button to access it. Netflix spokesman Kumiko Hidaka confirmed the plan’s elimination and noted that Netflix’s starting costs are lower than competitors’. With this adjustment, Netflix hopes to increase signups while maintaining its competitive edge in the streaming market.
