Netflix Shifts Strategy, Emphasizing Ad-Supported Model and Phasing Out Basic Ad-Free Plan

Netflix,, has recently made a significant move by eliminating its lowest-cost ad-free subscription plan and focusing on an ad-supported business model. This strategy was first implemented in Canada last month and has now been extended to customers in the US and UK, causing a shift in the company's subscription offerings.

Previously, Netflix had four subscription plans for its customers: Standard with ads priced at $6.99, Basic ad-free at $9.99, Standard ad-free at $15.49, and Premium ad-free at $19.99. However, starting yesterday, the company now offers only three plans, removing the Basic ad-free option that cost $9.99 per month.
As a result, the cheapest ad-free option for Netflix viewers is now the Standard ad-free plan, priced at $15.49 per month. The Basic plan, which previously allowed subscribers to stream high-definition content (up to 720p) without any ads, also limited users to one device at a time for streaming. In contrast, the Premium plan, priced at $19.99, allowed users to stream on up to four devices simultaneously.

While new subscribers are no longer able to sign up for the Basic ad-free plan, it remains unclear how long current users will continue paying the $9.99 fee. They may be eventually required to switch to one of the available ad-supported plans or opt for the higher-priced ad-free options.

Notably, Netflix has been making headlines for its efforts to combat password sharing between different households. This approach led to the loss of some subscribers, but the streaming giant also gained new customers in the process.

By eliminating the Basic ad-free plan, Netflix aims to expand its ad-supported offerings, potentially appealing to a broader audience while also addressing the costs associated with providing an ad-free experience. As the streaming landscape continues to evolve, Netflix's decision marks a strategic shift that could have implications for the future of subscription-based content services.