Netflix has decided to end its Basic plan in the United States and France. The move marks a departure from the ad-free entry-level option, pushing users toward the more expensive Standard plan or a newly introduced, more affordable ad-supported plan.

The decision, revealed during the company’s second-quarter financial report, follows successful tests of similar changes in the United Kingdom and Canada. Early tests showed positive reception from users, prompting Netflix to roll out the changes globally.

Previously priced at $11.99 per month in the United States, the Basic plan was recently restricted to existing subscribers while new users were directed to alternative options. The revamped subscription line now emphasizes a $6.99 ad-supported plan as the most economical choice, aimed at budget-conscious viewers.

For those who prefer an ad-free experience, Netflix offers the Standard plan for $15.49 per month, which enables HD streaming on multiple devices. Meanwhile, the Premium plan, priced at $22.99 per month, supports 4K streaming where available, along with improved device compatibility and offline viewing capabilities.

In addition to revamping its subscription structure, Netflix announced further strategic shifts in its quarterly report. The streaming giant is currently testing ads on its Pause screen, exclusively for its ad-supported tiers, suggesting potential revenue diversification beyond subscription fees.

Additionally, Netflix plans to recalibrate its performance metrics, shifting its focus from acquiring new subscribers to regional revenue growth. This adjustment underscores Netflix’s evolving strategy to maintain profitability amid increasing competition in the global streaming market.

As Netflix navigates these changes, the company remains committed to improving the user experience while exploring innovative revenue streams. The phased rollout of new subscription plans underscores Netflix’s commitment to adapting to changing consumer preferences and market dynamics, ensuring its continued leadership in the digital entertainment landscape.