Netflix is now asking certain users to either pay higher fees or tolerate advertisements
Netflix is ending its cheapest ad-free subscription plan, which currently costs $11.99 per month. This will initially start in Canada and the UK in the second quarter of this year. As such, the most affordable ad-free option for Netflix viewers is the $15.99 plan, which represents a significant price increase, as reported by The Verge.
Now, Netflix users looking for a more cost-effective solution can subscribe to an ad-supported plan starting at $6.99 per month.
“In Q4’23, as in the previous quarter, our ad-supported membership grew nearly 70% quarter-over-quarter due to our offering (eg downloads) and the phasing out of the Basic plan for new and rejoining members in our ad-supported markets,” Netflix stated.
The ad-supported plan now accounts for 40% of all Netflix subscribers in our ad-supported markets, and we plan to discontinue our Basic plan in some of our ad-supported countries, starting with Canada and the UK in Q2. expanding from there,” Netflix added.
According to reports, this change is a direct result of Netflix’s strategy to diversify its revenue streams beyond subscriptions and leverage advertising through ad-supported streaming.
Simply put, Netflix aims to encourage more users to watch ads with a cheaper subscription or pay more for standard and premium tiers. Notably, the streaming giant also raised the price of its premium plan in October, changing the price to $22.99.
It’s also worth noting that this announcement coincides with the announcement of a new multi-billion dollar deal between Netflix and WWE to bring Monday Night RAW to Netflix. This $5 billion deal gives Netflix, the streaming giant, exclusive rights to broadcast the hugely popular weekly wrestling show to its massive audience for 10 years.
