Understanding Netflix’s Shift Away From the Budget-Friendly Streaming Option

Netflix has been trying to get rid of its cheapest ad-free plan, attempting to either get people to pay more or switch to a more lucrative ad-supported plan. Netflix Basic, which allowed for 720p streaming as well as up to two concurrent streams, is now starting to be phased out in some countries.

Netflix is making good on its previous promise to remove its most affordable ad-free plan for existing subscribers. If you’re on the $9.99/month basic plan, Netflix will likely soon prompt you to switch to a new plan. One user on Reddit showed off a screen where it said their last day to watch on the current plan was July 13th, but it could be a different date for you—probably a month after the last day you were charged for the service.

The new options include the $6.99 ad-supported tier, the $15.49 ad-free tier, or the $22.99 ad-free 4K premium plan. This change is primarily affecting users in Canada and the UK, as Netflix announced in January its plans to phase out the basic tier in these countries first. But the change could very well come to other markets as well. Previously, Netflix stopped offering the plan to new and returning customers in the US, Canada, and the UK last year. Netflix hasn’t confirmed when the basic plan will be phased out for existing US subscribers, but given it’s pulling the plug in two out of those three markets, it’s safe to say that the change will probably come to US users sooner than later.

What will you replace the Basic plan with, then? The company is pushing users towards its ad-supported plan, which has seen significant growth, reaching over 40 million users in May. If you don’t want to cope with ads, you’ll have to move up to the Standard plan, which has Full HD streaming but is a bit more expensive than Basic.

Source: Reddit via The Verge

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