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Netflix is ​​phasing out its cheapest ad-free plan in the US, a move that could lead to more viewers opting for the cheaper plan with ads.

The Los Gatos, California-headquartered streaming giant said in a letter to shareholders on Thursday that it would phase out its basic ad-free subscription — which costs $11.99 per month — in the U.S. and France. The company had already dropped the basic subscription in the U.K. and Canada.

The Basic plan does not appear as an option for U.S. subscribers on the Plan & Pricing page for U.S. customers. The company stopped offering the Basic plan to new subscribers in July 2023, but allowed customers on the Basic plan to keep the subscription as long as they didn’t cancel it or change plans.

Other Netflix plans include a $6.99 monthly option with ads, a $15.49 monthly standard HD video quality plan (no ads), and a $22.99 premium Ultra HD plan (no ads).

Netflix, which began offering a “standard with ads” tier in November 2022, said the “attractiveness” of the plan led to a 34% increase in ad-supported subscriptions from the previous quarter. The company reported a record 277.65 million subscribers across all tiers in the second quarter, up 16.5% year over year.

Netflix subscribers in the U.S. and France who are currently on the Basic plan will need to choose a new plan, the company said in a statement to USA TODAY. Affected members will receive an email starting today, the company said.

Even without the basic ad-free offering, Netflix is ​​”a very strong offering for our members,” especially when you consider the $6.99-per-month ad-supported option, co-CEO Greg Peters said Thursday during a video conference call to discuss the company’s second-quarter performance.

“Essentially, we’re giving them a better experience: two streams versus one. We have higher definition. We have downloads. And of course, all at a lower price,” he said. “And for members who don’t want that ad experience, they can of course opt for our ad-free Standard or Premium plans.”

The company reported its third straight quarter of double-digit revenue growth, with revenue of $9.56 billion in the second quarter of 2024, up 16.8% from the same quarter in 2023.

Netflix added more than 8 million subscribers in the second quarter, thanks to the return of series like “Bridgerton” and “Baby Reindeer” and the live event “The Roast of Tom Brady,” as well as a stricter approach to password sharing.

What Netflix subscriptions are there?

  • Standard with ads ($6.99 per month): Watch in Full HD on 2 supported devices simultaneously and download on 2 supported devices simultaneously
  • Standard plan ($15.49 per month): Watch videos in Full HD and download them on 2 supported devices simultaneously (option to add 1 additional member who doesn’t live with you for $7.99/month).
  • Premium Subscription ($22.99 per month): Watch in Ultra HD (4K) quality on 4 supported devices simultaneously and download on 6 supported devices simultaneously. Option to add up to 2 additional members who do not live with you for $7.99/month.

Netflix gains 8 million new subscribers

Total subscribers grew to more than 277.6 million, up 16.5%, the company said. Netflix forecast lower subscriber additions in the current quarter (July-September) than in the same period last year, when the streaming company added more than 8.7 million.

In April, the company announced that it would stop reporting membership numbers from 2025.

In after-hours trading, Netflix shares initially fell 2%.

Netflix will begin rolling out monthly video game releases later this month, including one based on “Emily in Paris.” Later this year, a multiplayer game based on “Squid Game” will be released.

Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.

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