Netflix has confirmed that it has begun phasing out its cheapest 'Basic' plan ($10/month) without ads, meaning that new users in the future will have to pay significantly more to avoid ads.
The ad-free 'Basic' plan ($10/month) is being phased out first in Canada but is already hidden on the sign-up page under 'See all plans' in other countries, including the US, where Netflix's cheaper ad-supported 'Standard' plan is available.
- "The Basic plan is no longer available for new or rejoining members. If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account," Netflix Canada said on a support page.
Existing subscribers will keep their ad-free 'Basic' plan until they cancel.
The change means that Netflix's options for plans will look like this. The ad-supported plan was bumped up from 720p to 1080p in April 2023.
Netflix's plans after phasing out Basic
No ads in most countries
At a recent investor call, Netflix confirmed that it is actually making more money on the cheapest ad-supported plan than the ad-free plan, which is the likely motivation behind the decision.
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Netflix has launched its ad-supported plan only in a handful of countries so all other countries will presumably keep the option for the ad-free Basic for the time being, at least until Netflix decides to launch the ad-supported plan more widely.
- Source: CTVNews
