Netflix is Slowly Killing its Cheap Ad-Free Basic Plan




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Netflix really wants people on its ad-based plan.

The streaming giant has long since gotten rid of its basic ad-free plan, although those who were grandfathered in were able to keep it, even if went up to $11.99 a month in the fall. But the company is looking to get rid of it completely, and is starting with Canada and the U.K. in the second quarter.

Netflix co-CEO Greg Peters told investors on the company’s earnings call that it plans to start “retiring” the basic tier in countries where there’s an option for an ad-based plan. He didn’t specify what other countries could be phasing out the basic plan, but there’s a good chance it’ll happen in the U.S. at some point.

The removal of the basic plan will force users to choose between the $6.99 plan with ads, or pay more by moving to the standard plan for $15.49 a month. The premium plan, which went up in price in the fall, costs $22.99. The company also opened the door to more rate increases, so subscribers could be looking to pay more either way.

Peters said that the company now has 23 million users on the ad-based plan, up 70% from the prior quarter. Netflix wants to grow that base of users so it’ll be more attractive to advertisers.

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Image credit: Netflix (Squid Game: The Challenge)

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