United States: Netflix will begin removing its Basic plan, the cheapest ad-free option at $11.99 per month in the US.
The business had previously stopped taking new sign-ups for the Basic plan and directed users to the $6.99/month, ad-supported Netflix option. Existing customers, however, were permitted to maintain their basic package.
The online streaming giant said in January that it would discontinue its least expensive ad-free plan in the UK and Canada. The US and France will be next, and the business will be announced on Thursday.
These days, two options are available to US basic users who want to watch Netflix without advertisements: the $15.49/month Standard plan or the $22.99/month Premium plan. In the second quarter of this year, Netflix reported a 34 percent increase in new members to its most affordable ad-supported tier, the “Standard with ads” plan.
Netflix’s drive to encourage customers who share passwords to set up their accounts has contributed to the company’s recent spike in new members.
But the initial shock of the password-sharing restriction may soon wear off for short-term subscribers. Netflix announced on Thursday that it anticipates a slowdown in the rate of new member acquisition in the third quarter.
In after-hours trade, Netflix’s stock dropped by around 2 percent, but in 2024, it has increased by more than 35 percent.
The firm recently declared that, starting in 2025, it will no longer be releasing its quarterly subscriber figures. only, it will only provide the amount of time users spend on the site.
Over the last two months, Netflix has also made more inroads into the realm of live sports events and programming.
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