Netflix is sunsetting its most affordable ad-free subscription plan, currently priced at $11.99 per month. This will initially start in Canada and the United Kingdom during the second quarter of the current year. Consequently, the most economical ad-free option for Netflix viewers will be the $15.99 plan, representing a substantial increase in pricing, as reported by The Verge.
Now, Netflix users looking for a more cost-effective solution can subscribe to the ad-supported plan, which is priced starting at $6.99 per month.
“In Q4‘23, similar to the preceding quarter, our ad-supported membership increased by nearly 70% quarter over quarter, supported by enhancements in our offering (e.g., downloads) and the phasing out of our Basic plan for new and rejoining members in our ad-supported markets,” Netflix stated.
The ad-supported plan now constitutes 40% of all Netflix sign-ups in our ad-supported markets, and we are planning to retire our Basic plan in some of our ad-supported countries, starting with Canada and the UK in Q2, and expanding from there,” Netflix added.
According to reports, this move is a direct result of Netflix’s strategy to diversify its revenue streams beyond subscriptions and capitalise on ads through its ad-supported streaming.
In simple terms, Netflix aims to encourage more users to watch ads for a cheaper subscription or pay more for the standard and premium tiers. Notably, the streaming giant also increased the price for its premium plan in October, and revised the price to $22.99.
It is also notable that this announcement coincides with the unveiling of a new multi-billion-dollar agreement between Netflix and WWE, aimed at bringing Monday Night RAW to Netflix. Valued a at $5 billion, this deal grants Netflix, the streaming giant, the exclusive rights to broadcast the highly popular live weekly wrestling show to its vast audience for a period of 10 years.
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